Residential market update

Home resales across Canada slowed in September, but prices remained relatively stable. 

The most recent report from the Canadian Real Estate Association indicates that sales fell 1.7% in September compared with August, ending a streak of gains dating back to April. Once again, the Greater Toronto Area stood out by posting a year-over-year gain of 8.5% for September. The declines recorded in Greater Vancouver, Calgary, Edmonton, Ottawa and Montreal, however, outweighed them. 

In September, on a twelve-month basis, sales rose 5.2%, which represents a solid gain. 

Prices, measured by CREA's National Composite Price Index, remained virtually unchanged from August to September (-0.1%), but were down 3.4% year over year. The national average price of a home reached $676,000 in September, up 0.7% from September 2024. 

Although Canadian real estate agents continue to forecast a sustained rise in sales and prices, they temper their expectations. The uncertainty caused by tariffs and U.S. trade policy seems to have been enough to cause interested buyers to pull out of the market. This is particularly the case in British Columbia and Ontario. 

According to CREA's latest quarterly forecasts, sales will have fallen 1.1% in 2025 and, nationwide, the average price of a home will have fallen 1.4% to settle at $676,700. In 2026, housing sales nationwide are expected to rebound by 7.7%, with the national average price of a home rising by 3.2% to reach $698,600.