Home sales across Canada slipped in September. In its monthly statistics package released on Friday, October 16, 2026, the Canadian Real Estate Association (CREA) reported that sales recorded on Canadian MLS® Systems fell 2.3% from August, ending what the association described as a four-month run of modest improvement.
- Sales: down 2.3% from August (seasonally adjusted); actual sales 7.7% below September 2025.
- New listings: down 1.8% month over month.
- Sales-to-new-listings ratio: 48.8%, from 49.1% in August (long-term average 54.7%).
- Inventory: 4.9 months nationally, in line with the long-term average.
- MLS® Home Price Index: down 0.4% month over month and 3.4% year over year (not seasonally adjusted).
- National average sale price: $666,538, down 1.6% from a year earlier (not seasonally adjusted).
What the numbers say
Sales fell slightly faster than new supply, so the national sales-to-new-listings ratio eased to 48.8%. CREA says readings between roughly 45% and 65% are generally consistent with balanced conditions. Slightly more than 200,000 properties were listed for sale at the end of September, up 1.8% from a year earlier, and the 4.9 months of inventory sits between CREA's seller's-market threshold (below 3.6 months) and buyer's-market threshold (above 6.4 months).
Prices softened. CREA attributes the 0.4% monthly drop in the composite benchmark price mainly to a fresh step down in Ontario, alongside smaller price gains on the Prairies, in Quebec and on the East Coast. The 3.4% annual decline is the first time since January that the year-over-year drop has widened.
CREA's economists linked the pullback to a recent jump in fixed mortgage rates and to market expectations that the Bank of Canada could raise its policy rate before year-end. That is CREA's reading of the market, not a decision: the Bank's policy interest rate stood at 2.25% after its September 2 announcement, and the next scheduled decision is October 28.
Who is affected
Buyers who are shopping now face higher fixed-rate quotes than earlier this year but, in most markets, more listings to choose from and more time to negotiate. Sellers, particularly in Ontario where prices dipped again, may need to price more carefully. Homeowners renewing in the coming months are affected through rates rather than prices.
Our interpretation: national averages hide large local differences. Balanced national figures can coexist with buyer-leaning conditions in one city and tight supply in another, so local board data matters more than the headline.
What to check next
- If you have a pre-approval, confirm when its rate hold expires and what rate applies if it lapses.
- Re-run your budget at today's quoted rates with an affordability calculator rather than relying on numbers from the spring.
- Ask a local real estate professional for benchmark prices and days on market in your neighbourhood, not just the national average.
CREA's next statistics package is scheduled for Tuesday, November 17, 2026.
Sources
- Canadian Real Estate Association, National statistics: September 2026 release, 2026-10-16. Accessed 2026-10-17.
- Bank of Canada, Policy interest rate. Accessed 2026-10-17.
General information only, not financial advice. Market statistics are national and may not reflect your local market.
