Canadian Housing Market Sees Resurgence in October

After a brief pause in September, the Canadian housing market saw a resurgence in October, with home sales increasing by 0.9% month-over-month. This uptick follows a steady trend that had been ongoing since April, suggesting that underlying demand for homes remains resilient despite broader economic uncertainties. The rise in sales activity comes at a time when interest rates are approaching levels that could stimulate more activity in the market, fueling expectations for continued growth in housing demand into 2026. However, this anticipated market boost is likely to be tempered by ongoing economic challenges, including inflation concerns and global financial instability.

In October, the number of new listings saw a slight decline of 1.4%, which, when combined with rising sales, led to a tightening in the sales-to-new listings ratio, reaching 52.2%. While this figure indicates a more active market, it remains below the long-term average of 54.9%, suggesting the market is not yet fully balanced. The MLS® Home Price Index also saw a modest 0.2% increase from September, though it remains down 3% compared to the same time last year. On a national scale, the average home price in Canada was reported at just over $690,000, reflecting a slight year-over-year decrease of 1.1%.

Looking ahead to the winter months and into 2026, there are signs that demand is building, with the number of properties listed for sale remaining close to the long-term average. The market's inventory at the end of October stood at 4.4 months, indicating a relatively stable environment, though still below the five-month long-term average. This suggests that while conditions are conducive for sellers, they are not extreme enough to create a clear seller’s market. As the spring market approaches, experts are keeping a close eye on the potential for pent-up demand to drive significant market movement, with expectations that the upcoming months could bring further shifts in housing trends.