After a brief slowdown in September, Canada\u2019s housing market regained momentum in October, picking up where it left off after five months of steady growth. According to the Canadian Real Estate Association (CREA), 42,068 homes changed hands in October, up from 39,700 in September, a 6.0% month-over-month increase, marking the sixth gain in the past seven months.<\/p>\n
While sales were 4.3% lower year-over-year, the return to growth indicates that the fall market maintained its underlying strength despite persistent economic uncertainty. Smaller and mid-sized regions once again led the recovery, while major markets like Toronto and Vancouver continued to find stability in balanced conditions.<\/p>\n
CREA Senior Economist Shaun Cathcart described September\u2019s dip as a \u201cbrief pause\u201d in an ongoing recovery. He added that, with borrowing costs now \u201calmost in stimulative territory,\u201d housing activity is expected to continue building momentum into 2026, although broader economic caution may moderate the pace.<\/p>\n
A Calm Market Keeps Prices in Check<\/strong><\/p>\n The national average home price rose to $690,195 in October, up 2.1% month-over-month from September\u2019s $676,154. Prices were 1.1% lower year-over-year, signaling that the market has entered a period of overall stability following earlier volatility.<\/p>\n In contrast, larger urban regions experienced softer movement. The Greater Toronto Area (GTA) averaged $956,800, edging 0.3% lower month-over-month and down 0.36% year-over-year, while Greater Vancouver\u2019s average price was $1,132,500, a 0.84% year-over-year decrease.<\/p>\n National Conditions Hold Firm<\/strong><\/p>\n Nationally, market balance held steady through October. The sales-to-new-listings ratio tightened slightly to 52.2%, up from 51% in September, while months of inventory remained at 4.4, the lowest level since January and below the long-term average of five months.<\/p>\n This consistency suggests that while demand has strengthened, supply remains sufficient to maintain stable prices heading into winter. Most regions are hovering near equilibrium, with smaller cities experiencing the strongest momentum and larger urban markets showing measured resilience.<\/p>\n Smaller Markets Continue to Drive Sales Momentum<\/strong><\/p>\n Across the country, smaller and more affordable cities continued to post the strongest gains. Trois-Rivi\u00e8res CMA led national growth with 149 homes sold in October, representing a 46% month-over-month increase and a 22.1% year-over-year rise. The city also boasted the largest year-over-year price increase, rising by 19.5% to an average of $441,901. Windsor\u2013Essex followed with 547 sales, up 17.4% month-over-month and 8.7% year-over-year. Ottawa recorded 1,043 sales, rising 7.2% month-over-month and 1% year-over-year.<\/p>\n These markets share a key advantage (a combination of affordability and balanced inventory) that continues to attract buyers priced out of the country\u2019s largest cities.<\/p>\n Overall, October\u2019s top performers reflected a clear divide between smaller, affordable markets and higher-priced urban centers. Trois-Rivi\u00e8res, Windsor-Essex, Fraser Valley, and Ottawa recorded the largest month-over-month sales gains, demonstrating strong buyer engagement as fall activity picked up.<\/p>\n On an annual basis, Trois-Rivi\u00e8res (+22.1%), Quebec CMA (+15.7%), Sherbrooke (+13.4%), and Windsor-Essex (+8.7%) led the country for year-over-year sales growth.<\/p>\n Meanwhile, larger western markets such as Edmonton (\u201315.7%), Fraser Valley (\u201315.3%), Greater Vancouver (\u201313.9%), and Calgary (\u201311.6%) saw declines compared to last year, emphasizing how affordability continues to define market performance heading into 2026.<\/p>\n Listings Ease Slightly But Stay Above Year-Ago Levels<\/strong><\/p>\n Nationally, new listings fell slightly in October to 79,225, down 1.4% month-over-month from September\u2019s 79,225. However, supply was 4.3% higher than last year, suggesting that more sellers are gradually returning to the market.<\/p>\n In Ontario, listings held steady: Ottawa (\u20131%) and London\u2013St. Thomas (flat) showed little change, while Windsor-Essex and Kitchener-Waterloo dipped slightly month-to-month but remained well above year-ago levels (+22.9% and +17.6%, respectively).<\/p>\n Across Qu\u00e9bec, Sherbrooke (+14.7%), Quebec City (+13.8%), and Gatineau (+9.1%) led annual supply gains, while out West, Edmonton (+12.1%) saw a sharp uptick. In contrast, Fraser Valley (\u201312.1%) and Greater Vancouver (\u20133.6%) remained tighter.<\/p>\n While smaller and mid-sized cities drove October\u2019s gains, Canada\u2019s two largest housing markets ( the GTA and Greater Vancouver) remained balanced and steady.<\/p>\n CREA Chair Val\u00e9rie Paquin said that, even with seasonal cooling, signs of underlying demand are clear. \u201cWe continue to see clues that the housing market is picking up steam,\u201d she noted. \u201cAll eyes will be on next year\u2019s spring market to see if that pent-up demand finally comes off the sidelines.\u201d<\/p>\n Major Canadian Cities Show Balanced Market Trends<\/strong><\/p>\n In October, Calgary\u2019s average home price was $565,200, marking a modest 0.48% month-over-month decline as market activity cooled after earlier gains. Victoria remained one of the more expensive markets at $873,600, but its 0.49% dip suggests that continued buyer confidence in the coastal region is waning. Regina\u2019s average price edged down 0.56% to $335,100, while London\u2013St. Thomas saw a slight 0.16% decrease to $561,400.<\/p>\n Only four major markets recorded price increases in October, including Barrie District (0.03%) and Montreal CMA (0.45%), while Quebec CMA (1.29%) and Saint John (2.53%) posted the largest gains.<\/p>\n A Gradual But Firm Recovery Ahead<\/strong><\/p>\n CREA\u2019s October report shows that Canada\u2019s housing market is stabilizing instead of staying stagnant. Smaller cities are driving growth, major markets are holding steady, and sellers are starting to return. With balance restored and interest rates easing, 2026 is shaping up to be a year of steady, confident progress.<\/p>\n Even as markets slow for fall, the declines remain small and localized. Most major cities have moved past the sharp drops seen earlier this year. Price adjustments are mild, signaling that the market has found its footing and is moving toward a healthier, more sustainable recovery.<\/p>\n