The Canadian Real Estate Association (CREA) has reported a decline in residential property sales for October 2025 compared to the previous year, alongside a drop in prices. A total of 42,068 homes were sold across Canada in October, representing a 4.3 percent decrease from October 2024. This ongoing downward trend highlights the challenging conditions in the real estate market as economic factors continue to influence buyer behavior.

Despite the year-over-year decline in sales, there was a slight month-over-month increase of 0.9 percent in home sales, marking the sixth consecutive increase in sales over the past seven months. This indicates a possible stabilization or tentative recovery within certain portions of the housing market, as buyers may be responding to the shifting dynamics of interest rates and housing availability.

The actual national average sale price of a residential property sold in October 2025 was reported at $690,195, which reflects a decrease of 1.1 percent compared to the same month in the previous year. CREA senior economist, Shaun Cathcart, has commented on the current interest rate conditions, suggesting that rates are "almost in stimulative territory." He anticipates that this could lead to increased activity in Canadian housing markets as we head towards 2026, but he also cautions that economic uncertainty may temper this potential growth.

Further insights from the CREA report regarding the housing inventory reveal that new listings were down by 1.4 percent month-over-month. At the end of October, there were 189,000 properties listed for sale across the country, which is a notable increase of 7.2 percent from the same period last year. This contrast between falling sales and the rising volume of available homes may signal a shift in market dynamics as prospective buyers navigate their options amid fluctuating prices and interest rates.

This complex real estate landscape presents both challenges and opportunities for stakeholders in the housing market. The variations in sales, pricing, and inventory suggest that while buyers may be more active, they are also exercising caution due to broader economic uncertainties. The coming months will be critical in determining how these factors will interact and what implications they will have for the future health of the Canadian real estate market.