September 2025 Housing Market Update: Sales Ease, Prices Stabilize, and 2026 Outlook Remains Positive

In September 2025, the Canadian housing market experienced a slight decline in activity, with national home sales dropping by 1.7% compared to the previous month. This small decrease was largely driven by weaker sales in major markets like Greater Vancouver, Calgary, Edmonton, Ottawa, and Montreal. These regions' slower activity outweighed the growth in the Greater Toronto Area and Winnipeg. Despite this monthly dip, sales in September were still higher than any September since 2021, continuing the strong momentum that had begun earlier in the year.

Though the overall trend showed a modest slowdown in September, the market remains robust. The increase in sales seen earlier in the year paused temporarily, but many analysts anticipate a return to growth in the coming months. With pent-up demand from the past few years and a return to more typical interest rates, the forecast for the remainder of 2025 and into 2026 is for further upward momentum in home sales, signaling that the market is far from stagnant. The recent period of relatively high sales activity suggests that confidence in the market remains strong, despite the slight decline.

On the supply side, the number of newly listed properties fell slightly by 0.8% month-over-month, while the number of properties listed for sale across the country at the end of September showed a 7.5% increase year-over-year. This rise in listings brings the number of available homes closer to the long-term average for this time of year, helping to maintain a balanced market overall. However, the inventory level remained tight, with only 4.4 months of inventory available, slightly below the long-term average of five months. This indicates that while supply is stabilizing, demand still outpaces the available stock in many areas, particularly in regions with high buyer activity.

The national average home price continued to show subtle growth, with the non-seasonally adjusted average price increasing by 0.7% from September 2024. However, the MLS® Home Price Index (HPI), which is adjusted for seasonal fluctuations, was relatively stable, showing only a slight decrease of 0.1% from August. The year-over-year change in the HPI, down 3.4%, reflects the market adjustments made earlier in 2024, with more consistent pricing patterns now emerging. This suggests that, while there were notable price drops earlier in the year, the overall trend is moving toward stability as we approach the end of 2025.

Looking ahead, experts believe the Canadian housing market is poised for gradual improvement, despite current fluctuations. While sales activity has dipped slightly, the overall market conditions remain strong with more buyers in the market than in recent years. With inventory levels still relatively low and an anticipated increase in sales, buyers and sellers alike are advised to stay informed about the evolving market. REALTORS® across the country remain valuable resources for those looking to navigate this shifting landscape, helping individuals make informed decisions about their real estate needs as the market continues to evolve through the final months of the year and beyond.