Canada’s housing market hit a short pause in September 2025 after five straight months of growth. According to the Canadian Real Estate Association (CREA), 39,938 homes were sold across Canada in September, a 1.7% decrease from August. Sales were 5.2% higher than in September 2024, making it the busiest September since 2021.

While sales slowed slightly, CREA noted this was more of a pause than a pullback. The Greater Toronto Area (GTA) and Winnipeg recorded modest gains that helped offset declines in Greater Vancouver, Calgary, Edmonton, Ottawa, and Montreal.

CREA’s Senior Economist Shaun Cathcart described the September slowdown as a temporary “breather” in a still-strengthening trend.

“While the trend of rising sales that began earlier this year took a breather in September, activity was still running at the highest level for that month since 2021,” he said. “With three years of pent-up demand still out there and more normal interest rates finally here, the forecast continues to be for further upward momentum in home sales over the final quarter of the year and into 2026.”

Smaller Cities Lead on Price Growth

Home prices remained steady in September, indicating that the market remains stable following earlier fluctuations. Homes in Canada sold for an average price of $676,154, up 0.7% year-over-year.

Smaller, more affordable markets saw the strongest price gains. Saguenay led the country with a 16.9% increase to $374,810, followed by Thunder Bay, up 16.2% to $378,758, and Quebec CMA, which climbed 13.3% to $480,657. Gatineau also saw steady growth, rising 8.3% to $495,265.

In contrast, prices in Canada’s major cities softened slightly. The GTA fell 4.3% to $1,059,377, Calgary decreased 1.2% to $624,412, and Greater Vancouver edged down just 0.3% to $1,253,426, showing stability in high-priced regions.

New Listings Continue to Climb in Smaller Cities

Several regions experienced significant increases in new listings, providing buyers with more options. Saguenay CMA recorded a 54.3% jump with 199 new listings, while Thunder Bay rose 31.4% to 297 listings, and Gatineau CMA climbed 30.5% to 788 listings.

By comparison, national new listings saw an 8% year-over-year rise, indicating that these regional markets are expanding their housing supply much faster than the country overall.

Regional Sales Highlights This September

However, the GTA and Winnipeg were among the few major markets to post stronger sales in September, helping offset slower activity elsewhere. The GTA recorded 5,592 sales, up 11.9% from 4,996 the previous year, while Winnipeg saw a 9.8% increase to 1,269 transactions. In comparison, Greater Vancouver posted a more modest 1.8% gain to 1,870 sales, reflecting steadier conditions in one of Canada’s most expensive markets.

Nationally, home sales rose 5.2% year-over-year to 39,700, marking the strongest September since 2021.

Balanced Conditions in the National Market

Housing supply also held steady. The number of newly listed properties edged down 0.8% month-over-month, keeping the national inventory level at 4.4 months—the lowest since January and below the long-term average of five months. This indicates a balanced market that leans slightly toward sellers, but remains far from overheated.

CREA Chair Valérie Paquin stated that, although buyer activity has increased, the market still has room to grow. “While there are more buyers in the market now than at almost any other point in the last four years, sales activity is still below average and well below where the long-term trend suggests it should be,” she said. “As such, we expect things will continue to steadily pick up going forward.”

Is Canada’s Housing Market Recovery Simply Delayed?

The latest CREA forecast shows that Canada’s housing market recovery has been delayed rather than derailed. Following the disruption in early 2025 caused by tariff-related uncertainty and economic volatility, many buyers put their plans on hold, particularly in high-priced regions such as Ontario and British Columbia. As a result, national sales are now expected to dip 1.1% to 473,093 units in 2025, with the average home price easing 1.4% to $676,705.

However, CREA anticipates a strong rebound in 2026 as confidence returns and pent-up demand resurfaces. Sales are projected to rise 7.7% to 509,479 units, while prices are expected to increase 3.2% to $698,622, bringing the national average back near the $700,000 mark. Although some uncertainty remains, the outlook for 2026 suggests a more stable and balanced market, driven by steady demand and gradually improving economic conditions.

CREA : Delayed or Derailed? Canada’s Housing Recovery is Still on Track by Angela Serednicki | zoocasa