Canadian Home Sales Slip at Start of Fall Season

After four months of modestly positive progress in demand, supply and prices, many of Canada’s housing markets took a step back in September.

Shaun Cathcart, senior economist with the Canadian Real Estate Association, says he is not surprised, given the latest jump in fixed mortgage rates and growing expectations that the country’s central bank will raise interest rates before year-end.

“With housing affordability already stretched, the big question going forward is how much farther the Bank of Canada (will) have to go to keep a lid on inflation next year,” he says. “Until that becomes clearer, this fresh round of uncertainty will likely send some buyers back to the sidelines.”

The number of home sales recorded across Canadian MLS systems fell by 2.3 per cent month-over-month in September.

New listings resumed their downward trend following an August rebound, falling 1.8 per cent month-over-month.

Just over 200,000 properties were listed for sale at the end of September, up 1.8 per cent from the same time last year and slightly above the long-term average.

Overall, supply has remained steady at historically average levels since spring 2025.

Home prices edged down 0.4 per cent from August. Following four months of stable prices, the monthly decline reflected a fresh price drop in Ontario, where demand softened in September, alongside continued moderation in price gains across the Prairies, Quebec and the East Coast.

The national average home price was $666,538, a dip of 1.6 per cent from the same month last year.