Canadian Home Sales Rise Again as Buyers Regain Confidence Ahead of 2026

Sales tick upward, inventory holds steady and confidence returns as Canada’s housing market sets a stable pace heading into 2026

November 17, 2025 – After a brief pause in September, Canada’s housing market resumed its climb in October. National home sales rose 0.9% month over month, marking the sixth gain in the past seven months. The uptick came despite a 1.4% drop in new listings, tightening market conditions. With sales rising and inventory holding steady at 4.4 months of supply, balanced conditions remain the dominant theme heading into the final stretch of 2025.

Steady Demand, Limited Supply

October’s rise in sales confirms what many Coldwell Banker Canada professionals have been observing on the ground: confidence is finally returning. 

“We are in a market where stability is setting the tone,” said Karim Kennedy, Chief Executive Officer of Coldwell Banker Canada. “The extremes of the past few years have made Canadians more selective, more informed and more intentional about real estate decisions. That’s not a bad thing. It’s creating space for smarter conversations, and for clients to plan rather than react.”

Even with improved sales activity, prices have remained flat. The national MLS Home Price Index edged up just 0.2% from September, while the average sale price came in at $690,195, down 1.1% compared to October 2024. Regional variation continues to play a key role, with affordable markets in the Prairies and Atlantic Canada seeing small gains while larger markets like Toronto and Vancouver remain steady.

Balanced Conditions Create Space to Act

Buyers are finding themselves in a more predictable environment than they have seen in years. Inventory has stabilized and the pace of sales has returned to pre-COVID levels. Meanwhile, sellers are pricing more realistically, knowing that today’s buyers are well-informed and not in a rush.

“This is a strategy market,” explained Hashim Arthur, Chief Operating Officer of Coldwell Banker Canada. “In this kind of environment, the agents who win are the ones who bring energy and local insight. Sellers need clarity, not hype. And buyers want guidance they can trust. That’s where we’re focusing our leadership.”

The national sales-to-new-listings ratio tightened to 52.2% in October, moving closer to historical norms. With fewer new homes coming to market and demand gradually strengthening, sellers who list before the year ends could benefit from reduced competition and serious buyers eager to transact before 2026.

Government Policy and Market Outlook

The federal government’s 2025 budget included several housing-focused measures, including eliminating the Underused Housing Tax and offering GST relief for first-time buyers. These policies, while still ramping up, are expected to provide modest support to affordability and supply heading into the new year.

The Bank of Canada’s recent rate cuts have pushed borrowing costs to their lowest level since early 2022. With rates now more favourable and additional cuts still possible, experts anticipate continued activity through the winter and into the spring.

“If you’re a buyer who has been on the sidelines, now is the time to get organized and start planning,” noted Arthur. “For sellers, success today is about getting the fundamentals right. When pricing and presentation align, even a balanced market can deliver strong results.”

Looking Ahead 

As 2025 winds down, there is a sense of optimism in the real estate community. While economic uncertainty and affordability concerns remain, the fundamentals of housing demand in Canada, including population growth, employment stability, and buyer sentiment, are pointing in the right direction.

“The market is no longer swinging between extremes, and that is a good thing,” added Kennedy. “We‘re entering a phase where thoughtful decisions, good advice and local insight matter more than ever. Our teams are helping Canadians navigate it with confidence and clarity.”

With balance in place and confidence on the rise, the final months of 2025 could lay the foundation for a strong start to the new year.