A subtle shift is underway in the Canadian housing market. While still navigating economic uncertainties, the number of homes changing hands rose for the sixth time in seven months this October, signaling a renewed, though cautious, momentum.
Nationwide, 42,068 residential properties were sold last month – a 4.3 per cent decrease compared to October of the previous year. However, this year-over-year dip doesn’t tell the whole story; the 0.9 per cent monthly increase reveals a strengthening undercurrent of buyer activity.
British Columbia, Alberta, and Quebec spearheaded the recent gains, witnessing a surge in sales. This contrasts with a slight slowdown observed in Ontario, Saskatchewan, and Manitoba, highlighting a regional divergence in market performance.
Experts suggest that declining interest rates are beginning to stimulate demand, edging closer to levels that encourage investment. This trend is anticipated to continue into 2026, though the overall economic climate remains a significant factor.
Despite the uptick in sales, the national average home price in October settled at $690,195, representing a 1.1 per cent decrease year-over-year. This suggests that while more homes are being sold, price growth isn’t yet experiencing a widespread boom.
A closer look at typical home sales, as measured by a dedicated home price index, reveals a more nuanced picture. This index actually edged up 0.2 per cent between September and October, though it remains down three per cent compared to the same period last year.
The balance between supply and demand is a key driver of these trends. Tight inventories across much of the country are expected to support continued, albeit moderate, price growth. However, British Columbia and Ontario currently favor buyers, likely restraining price increases in those provinces for the foreseeable future.
Adding to the complexity, the number of new listings decreased by 1.4 per cent last month. Despite this decline, the total number of properties available for sale at the end of October reached 189,000 – a 7.2 per cent increase compared to a year ago.
The Canadian housing market is demonstrating resilience, slowly recovering from recent challenges. While sales levels remain relatively modest, the prevailing narrative points towards a gradual, sustained improvement, fueled by pent-up demand and anticipated gains in the job market.
