Canadian home sales were lower last month compared with the previous year, as rising inventories and cautious buyers continued to shape market conditions heading into winter. New figures from the Canadian Real Estate Association show 42,068 residential properties changed hands in October, a 4.3 per cent decline from October 2024.

Despite the annual drop, monthly activity inched higher. Sales increased 0.9 per cent from September, marking the sixth monthly gain in seven months. Analysts say that pattern suggests the market may be stabilizing after several years of volatility driven by interest rate hikes, affordability pressures and broader economic uncertainty.

The national average home price in October was $690,195, down 1.1 per cent compared with last year. CREA senior economist Shaun Cathcart said interest rates are now approaching what he described as “almost in stimulative territory,” a shift he believes could help strengthen activity through 2025 and into 2026. However, he cautioned that ongoing economic concerns may limit how quickly buyers return to the market.

New listings dipped 1.4 per cent from September, although total inventory remains higher than last fall, with about 189,000 properties available across the country. In housing hotspots such as Metro Vancouver, the Fraser Valley and Calgary, real estate boards have also reported modest monthly increases in activity as buyers respond to improving borrowing conditions.