Canada’s housing market takes a step back

Canada’s resale housing market lost momentum in September. Home sales fell 2.3% from August, the Canadian Real Estate Association reported in its October 16 release. Its composite home price index slipped 0.4% month over month.

The slowdown did not leave the country with an unusually large supply of homes for sale. CREA reported 4.9 months of inventory, close to the measure’s long-term average. New listings also declined, by 1.8% from August.

The regional picture matters. CREA described renewed price weakness in Ontario alongside moderating gains in the Prairies, Quebec and the East Coast. A national headline therefore cannot settle the question of what is happening on an individual street.

For readers comparing markets, the useful distinction is between sales activity, available inventory and prices. They measure different parts of the market. The national average sale price, which CREA put at $666,538 for September, also reflects the mix of homes sold. It is not an estimate of what a particular home should cost.

This article was prepared with AI assistance from the primary sources linked above. REAL Newsroom is our institutional byline. Historical data is identified by its reference period. Read our editorial standards.