Canadian Home Sales Dip 1.7% in September 2025 Amid Stable Pricing

Canadian Home Sales Decline 1.7% in September 2025

In September 2025, Canadian home sales experienced a modest decline, falling 1.7% compared to the previous month. This drop reflects a cooling in market activity, although prices remain relatively stable. The national average home price rose to $676,154, marking a 1.0% increase year-over-year, as reported by WOWA.ca's Canadian Housing Market Report. Despite the decrease in sales volume, the sales-to-new-listings ratio stayed at 50.7%, a clear indication of a balanced market environment. Active listings increased by 7.5% year-over-year, suggesting that buyers have more options as the market transitions into the fall season.

Average Home Prices See Modest Year-Over-Year Gain of 0.7%

While sales volume has dipped, the average home price has shown resilience, reflecting a 0.7% rise year-over-year as of September 2025. This stability in pricing suggests that while there may be fewer transactions, the demand for properties remains healthy enough to support price levels. According to WOWA.ca, the month-over-month price increase was even more significant at 1.8%, a sign of potential upward pressure on prices in certain regions.

Regional Variations Highlight Saskatchewan's Strong Performance

Examining regional disparities, Saskatchewan emerges as a standout performer in 2025, with price growth exceeding 10% in several months, according to TD Economics' Provincial Housing Market Outlook. In contrast, Ontario and British Columbia are predicted to face challenges, with anticipated price declines due to higher inventory levels and intense competition among sellers. This divergence highlights the importance of regional analysis for investors looking to capitalize on Canada's diverse real estate markets.

Saskatchewan emerges as a standout performer in 2025, with price growth exceeding 10% in several months.

RBC Economics Predicts Price Declines in 2026

Looking ahead, RBC Economics forecasts a 0.7% decline in home prices nationally in

RBC Economics forecasts a 0.7% decline in home prices nationally in 2026.

2026. This projection considers the current inventory levels and market dynamics, which are expected to shift as sellers adjust to changing demand. However, a rebound in resales is anticipated in 2026, with a 7.9% increase projected, suggesting a potential recovery phase in the market.

Factors Influencing the Market: Interest Rates and Inventory

The current market conditions are influenced by several factors, including interest rates and inventory levels. The anticipated relief in interest rates by the Bank of Canada, alongside pent-up demand, could drive a modest recovery in home sales, as suggested by TD Economics. However, the increased inventory provides buyers with more negotiating power, which might temper aggressive price increases.

Future Implications for International Investors

For international investors, understanding these market dynamics is crucial. The stable pricing environment presents opportunities for those seeking long-term investments, especially in regions showing strong price growth like Saskatchewan. Additionally, the projected price declines in 2026 might provide entry points for value investors in markets like Ontario and British Columbia. RealEstateAbroad.com recommends investors regularly review regional market reports and consult local experts to navigate the evolving Canadian housing landscape successfully.

Key Takeaways from Recent Developments

In summary, while Canadian home sales have shown a slight decline, the stability in prices provides a measure of confidence in the market's resilience. Regional variations underscore the need for targeted investment strategies, and the outlook for 2026 suggests potential opportunities for strategic acquisition. Investors should remain vigilant of interest rate changes and inventory shifts, which are pivotal in shaping market dynamics.