Canada’s housing market continued its slow but steady rebound this fall. According to the Canadian Real Estate Association’s (CREA) November 2025 National Housing Statistics, home sales rose 0.9 percent month over month in October, extending the upward momentum that began in spring.
After a slight pause in September, October’s data shows demand is gradually returning as interest rates move closer to stimulative levels.
“With interest rates now almost in stimulative territory, housing markets are expected to continue to become more active heading into 2026,” said Shaun Cathcart, CREA’s Senior Economist.
Despite the monthly increase, activity remains 4.3 percent below October 2024 on an annual basis.
Key Highlights from CREA’s October 2025 Housing Report
- National home sales: +0.9 percent month over month
- Annual sales: 4.3 percent below October 2024
- New listings: -1.4 percent month over month
- MLS HPI: +0.2 percent month over month
- MLS HPI (YoY): -3 percent
- National average sale price: $690,195 (-1.1 percent YoY)
- Active listings: 189,000 (+7.2 percent YoY)
New Listings Decline, Market Tightens Slightly
Newly listed properties fell 1.4 percent in October, while sales rose, tightening the national sales-to-new listings ratio to 52.2 percent, up from 51 percent in September.
This is still within balanced market territory. For context:
- Long-term national average: 54.9 percent
- Balanced range: ~45 percent to 65 percent
At the end of October, Canada had 189,000 properties listed for sale, a 7.2 percent increase from last year but close to historical averages for this time of year.
Inventory Levels Hold Steady as Demand Strengthens
Canada had 4.4 months of inventory at the end of October, unchanged from the past three months and the lowest level since January.
- Long-term average: 5 months
- Seller’s market: below 3.6 months
- Buyer’s market: above 6.4 months
Although not extreme, the tightening trend indicates underlying demand is building as rates ease.
Prices Stabilizing: MLS HPI Posts Small Monthly Increase
The National Composite MLS Home Price Index edged up 0.2 percent from September to October. On an annual basis, the index remains 3 percent below last year, the smallest year-over-year drop since March.
The national average sale price came in at $690,195, down 1.1 percent from October 2024.
This indicates that while prices are still lower year over year, the rate of decline is slowing, a sign that the market may be reaching a turning point.
What’s Next for Canada’s Housing Market Heading Into 2026?
CREA expects the market to remain quiet through the winter, as is typical, but all leading indicators point to growing pent-up demand.
“We continue to see clues that underlying demand for housing is picking up steam,” said Valérie Paquin, CREA Chair. “All eyes will be on next year’s spring market to see if all that pent-up demand will finally come off the sidelines in a big way.”
With interest rates dipping closer to levels that stimulate activity, early 2026 could bring a more competitive market, especially if inventory remains tight.
When Is the Next CREA Report?
The next CREA national statistics package will be released on Monday, December 15, 2025.
Source: November 17 2025 News Release | CREA Statistics
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