Dec 25, 2025
Canada’s housing market took a modest step back in November, as national home sales declined slightly and prices softened following several months of relative stability.
The Canadian Real Estate Association says home sales recorded over Canadian MLS Systems fell 0.6% month over month in November. Actual (not seasonally adjusted) activity came in 10.7% below November 2024, suggesting demand remains uneven as the market heads toward year-end.
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“At this point it’s looking like the mid-year rally in housing demand has veered into more of a holding pattern heading into 2026, coupled with what looks like some price concessions in November in order to get deals done before the end of the year,” said Shaun Cathcart, CREA’s senior economist, in a statement (1).
“That said, the Bank of Canada’s clear signal that rates are now about as good as they’re likely going to get is the green light many fixed-rate borrowers have no doubt been waiting for, so we remain of the view that activity will continue to pick up next year.”
Market activity cools as listings and sales both ease
CREA’s November data points to a market that has largely stalled since mid-summer, rather than one that is accelerating or deteriorating sharply.
New listings declined 1.6% month over month in November. With sales also down, the national sales-to-new listings ratio tightened slightly to 52.7%, up from 52.2% in October.
CREA notes that the long-term average for this measure is 54.9%, and that readings between roughly 45% and 65% are generally consistent with balanced housing market conditions.
At the end of November, there were approximately 173,000 properties listed for sale across Canadian MLS Systems. That figure was 8.5% higher than a year earlier but 2.5% below the long-term average for that time of year.
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Prices soften as sellers make concessions
Price data also showed modest declines, reinforcing signs that some sellers are adjusting expectations to close deals before year-end.
The National Composite MLS Home Price Index fell 0.4% between October and November and was down 3.7% compared with November 2024. CREA said the monthly dip suggests some sellers are making price concessions amid softer demand.
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The national average home price was $682,219 in November, down 2% from a year earlier on a non-seasonally adjusted basis.
"November was a soft month for resale housing, with Canadian sales and prices both down," said TD Economist Rishi Sondhi in a note (2).
"However, November's sales dip was small, and sales have climbed for six of the past eight months. As such, we're not throwing in the towel yet on our view that Canadian sales will grind higher through next year, supported by pent-up demand in B.C. and Ontario, and some improvement in job markets in 2026,” Sondhi noted.
Inventory levels also remain largely unchanged, according to CREA. Nationally, there were 4.4 months of inventory at the end of November, consistent with levels seen since July. CREA notes the long-term average is five months, with a seller’s market typically below 3.6 months and a buyer’s market above 6.4 months.
What November’s data signals heading into 2026
Economists suggest that CREA’s November figures point to a housing market that is pausing rather than reversing — with sales holding above spring lows, prices easing modestly and supply conditions remaining broadly balanced.
For buyers and sellers alike, the data suggests that the pace of activity heading into early 2026 may depend less on dramatic price shifts and more on how quickly confidence returns as borrowing costs stabilize and households reassess affordability in the months ahead.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
