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Canada’s housing market finds its rhythm, with steady demand, stable prices, and growing confidence heading into 2026.
After five months of steady gains, Canada’s housing market took a brief pause in September. National home sales slipped 1.7% compared to August, yet activity remained 5.2% above September 2024. It was the strongest September since 2021, a sign that buyer confidence and long-term demand remain steady.
Sales slowed in several major markets, including Vancouver, Calgary, Edmonton, Ottawa, and Montreal, while Toronto and Winnipeg posted gains that helped balance national numbers. After months of strong activity, a brief cooling period is not unexpected.
“This is a healthy recalibration, not a reversal,” said Karim Kennedy, Chief Executive Officer of Coldwell Banker Canada. “We are seeing the market settle into more sustainable patterns. That stability gives both buyers and sellers the confidence to move forward with clarity rather than urgency.”
Balanced Conditions Hold
On the supply side, new listings eased by less than 1% while inventory held steady at 4.4 months of supply, the lowest since January, but still within long-term averages. The national sales-to-new listings ratio remained near 51%, reinforcing balanced conditions across most regions.
“Buyers have more options than they did earlier in the year, and sellers who price correctly are achieving strong outcomes,” explained Hashim Arthur, Chief Operating Officer of Coldwell Banker Canada. “What we are seeing now is a market that rewards good strategy and preparation rather than pure timing.”
There were just under 200,000 homes listed for sale at the end of September, about 7.5% higher than last year and in line with historical norms. The additional supply is giving buyers more space to make informed decisions and reducing the pressure that defined earlier market cycles.
Prices Steady as Market Normalizes
The national MLS Home Price Index was virtually unchanged in September, down only 0.1% from August and 3.4% lower than a year ago. The national average sale price was $676,154, up 0.7% from September 2024.
That small increase reflects a market that has largely found its footing. Higher-priced cities such as Toronto and Vancouver continue to stabilize after deeper corrections, while more affordable regions in the Prairies and Atlantic Canada are showing modest gains.
A Season of Opportunity
The transition from rapid growth to balanced conditions is creating new opportunities for both consumers and the real estate industry. Buyers can now approach the market with less competition, while sellers can plan with more predictability.
“For buyers, this is a chance to make decisions with confidence rather than pressure,” noted Kennedy. “And for sellers, success now depends less on speed and more on how well your home is positioned and marketed.”
For brokers and agents, balance brings a different kind of opportunity. “When the market evens out, relationships matter most,” emphasized Paul Abbott, National Vice President of Franchise Sales for Coldwell Banker Canada. “This is when local expertise, professionalism, and guidance truly stand out. Brokers who invest in supporting their agents and helping them grow are the ones who will build lasting success.”
Looking Ahead
With interest rates stabilizing and consumer confidence improving, the final months of 2025 are expected to remain steady. Pent-up demand continues to surface as Canadians adjust to more normal borrowing conditions and look to make long-delayed moves.
Arthur sees this moment as one of optimism and perspective. “The conversation is shifting from what was lost during the market correction to what is possible now. Buyers, sellers, and agents alike are realizing that a balanced market isn’t a pause in progress. It’s the foundation for the next stage of growth.”
As Canada’s housing market prepares to close out the year, that foundation looks solid. Stability, strategy, and confidence are replacing volatility, setting the stage for a strong start to 2026.
