October sales rise again as shrinking new listings tighten conditions ahead of the 2026 market
Resale activity in the Canadian housing market advanced modestly in October, adding another month to a largely uninterrupted stretch of gains.
The Canadian Real Estate Association (CREA) reported that transactions through MLS systems rose 0.9% month-over-month, marking six increases in the past seven months and setting up a positive tone as we head into 2026.
“After a brief pause in September, home sales across Canada picked back up again in October, rejoining the trend in place since April,” says senior economist Shaun Cathcart. “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.”
Despite the latest uptick, actual (not seasonally adjusted) sales activity remained 4.3% below levels seen in October 2024, while new listings moved in the opposite direction, falling 1.4% month-over-month. The sales-to-new listings ratio tightened to 52.2% from 51% in September, close to the long-term average of 54.9% and still within the range associated with balanced conditions.
Inventory levels offered little relief for buyers with about 189,000 properties available nationally at the end of October, a 7.2% year-over-year increase but effectively aligned with historical norms. Months of inventory held at 4.4 for the fourth consecutive month, hovering near the lowest level since January and edging closer to seller-friendly territory.
Prices showed only mild movement as the MLS Home Price Index edged 0.2% higher on the month but remained 3% lower than a year earlier, the smallest annual drop since March. The national average sale price landed at $690,195, down 1.1% year-over-year.
CREA Chair Valérie Paquin noted that underlying demand appears to be rebuilding.
“As we head into the quiet winter season, we continue to see clues that underlying demand for housing is picking up steam,” she says. “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.”
CREA’s next market update arrives December 15.
