October’s housing data from the Canadian Real Estate Association (CREA) points to a meaningful uptick in activity, suggesting the national market is gaining momentum as we move toward 2026. With multiple interest rate cuts this year, buyers are finally feeling some relief—and it’s showing in both sales and prices.

Sales Continue to Climb

Home sales rose 0.9% in October 2025, marking the sixth increase in seven months. After a brief slowdown in September, activity picked back up, continuing the upward trend seen since spring.

According to CREA Senior Economist Shaun Cathcart, interest rates are now “almost in stimulative territory,” a shift that could drive even more activity—though broader economic uncertainty may keep growth gradual.

New Listings Dip, Market Tightens

New listings fell 1.4% in October, tightening the sales-to-new-listings ratio to 52.2%. While still slightly below the long-term average of 54.9%, the ratio remains within the range of a balanced market.

There were 189,000 homes listed for sale at month-end, up modestly from last year but in line with typical levels for this time of year. CREA Chair Valérie Paquin notes that even as we enter the traditionally quieter winter season, there are clear signs that pent-up demand is building.

Inventory Hits a Low Point

National inventory held at 4.4 months—the lowest level since January and below the long-term average of five months. While not yet a seller’s market, the trend suggests conditions are gradually tightening.

Prices Show Modest Improvement

The MLS® Home Price Index rose 0.2% month-over-month, while prices remained 3% lower than last year—the smallest annual decline since March. With prices stabilizing and rates easing, the environment is becoming increasingly attractive for buyers.

The Bottom Line

Improving fundamentals—more stable prices, lower borrowing costs, and steady demand—are drawing buyers back into the market. While certain regions like the Greater Golden Horseshoe are still working through the effects of trade uncertainty and earlier overbuilding, even those markets are beginning to show early signs of recovery.

All eyes are now on the spring market, where renewed demand and more favourable economic conditions could bring a significant turnaround.