Canada Housing Research Brief

Underlying momentum is building. After five consecutive monthly increases, national home sales edged down 1.7 per cent in September. Even so, it was the strongest September reading since 2021, extending the market’s gradual recovery seen through the summer months. New listings also dipped, falling 0.8 per cent, which nudged the sales-to new-listings ratio slightly lower to 50.7 per cent – a level consistent with balanced housing market conditions. With supply and demand now better aligned, prices appear to be stabilizing, with the median price of a single family home slipping by just 0.1 per cent month over month and 3.2 per cent year over year in September. After three years of pent-up demand, lower prices and less restrictive borrowing costs are beginning to unlock some sidelined buyers, setting the stage for firmer sales and pricing through late 2025 and into 2026.