Residential Market Commentary - Slowing in September

Canada’s resale housing market took a step back in September.

The latest numbers from the Canadian Real Estate Association show sales declined 2.3% compared to August and were down 7.7% from September of 2025.  Prices also drifted lower.

The national average home price for September came in at $666,500, down 1.6% from the same month a year ago.  CREA’s preferred measure of home prices, the National Composite Home Price Index, registered a 3.4% decline from September of 2025.

New listings also fell slightly marking a 1.8% decline from August.  With sales and new listings remaining, broadly, on pace with each other the market remains in balanced territory.  The sales-to-new listing ratio eased slightly to 48.8% compared to 49.1% in August.

Interest rate concerns appear to be the key factor holding back buyers.

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

As well, fixed-rate mortgage costs are being driven up by rising yields on government bonds, due to inflation concerns triggered by the war with Iran and the resulting increase in energy prices.

CREA says the market cooling was led by Toronto and Vancouver, but there has been a general decline right across the country.