October home sales down from last year, but more activity expected in 2026: CREA

Home sales were down in October according to new numbers but ticked up 0.9 per cent month-over-month.

The Canadian Real Estate Association says the number of residential properties that changed hands in October was lower compared with a year ago as prices also fell.

There were 42,068 home sales across the country last month, down 4.3 per cent from October 2024.

But home sales ticked up 0.9 per cent on a month-over-month basis, marking the sixth such increase in the past seven months.

“After a brief pause in September, home sales across Canada picked back up again in October, rejoining the trend in place since April,” said CREA senior economist Shaun Cathcart in a press release.

“With interest rates now almost in stimulative territory, housing markets are expected to continue to become more active heading into 2026, although this is likely to be tempered by ongoing economic uncertainty.”

The increase in month-over-month activity was led by sales boosts in B.C., Alberta and Quebec, while sales dipped in Ontario, Saskatchewan and Manitoba, noted TD economist Rishi Sondhi.

CREA said new listings were down 1.4 per cent month-over-month.

In some regions, inventory shortages and rising demand have led to a sellers’ markets. Regina real estate agent Chad Ehman with Royal LePage Next Level said that’s been the case in his city.

While those conditions have put sellers in a good mood, Ehman said many buyers he deals with are feeling fatigue from multiple unsuccessful bids.

“More often than not, if you have a good property that’s priced properly, there’s a good chance you’re getting multiple offers,” Ehman said.

“When you’re a buyer, it’s a little bit more of a grind ...When a good house comes out in that certain price range, it’s highly sought after in our market.”

There were 189,000 properties listed for sale across Canada at the end of October, up 7.2 per cent from a year earlier.

Sondhi said the “recovery narrative” dominating Canadian housing discourse remains firmly intact.

“That said, sales levels are still relatively low, so we’d be hard pressed to call the recovery robust,” he said in a note.

“Moving forward, we see sales continuing to grind higher, supported by pent-up demand, and some improvement in job markets next year.”

The actual national average sale price of a home sold in October was $690,195, down 1.1 per cent from a year ago.

CREA’s own home price index, which aims to represent the sale of typical homes, edged up 0.2 per cent between September and October 2025, but was down three per cent on a year-over-year basis.

“This improving demand backdrop should keep Canadian average home price growth in positive territory, backed by tight supply/demand balances across much of the country,” said Sondhi.

“In contrast, market balances favour buyers in B.C. and Ontario, which should keep price growth restrained in these markets for the next several months.”

Sammy Hudes, The Canadian Press