Canadian home sales fell 2.3 per cent month over month in September as higher mortgage rates weighed on buyers, according to figures released Friday by the Canadian Real Estate Association.
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The seasonally adjusted decline from August came as transactions dropped 7.7 per cent compared with September 2025.
“After a four-month run of modestly positive progress on demand, supply and prices, many of Canada’s housing markets took a step back in September,” CREA senior economist Shaun Cathcart said.
“This was hardly surprising given the latest jump in fixed mortgage rates, and with the Bank of Canada now widely expected to follow with a rate hike before the end of the year.”
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The national benchmark home price fell to $652,800 in September, down 0.4 per cent from August and 3.5 per cent from a year earlier.
New listings declined 1.8 per cent month over month, while the sales-to-new-listings ratio edged down to 48.8 per cent from 49.1 per cent in August, remaining within the range CREA considers balanced between buyers and sellers.
CREA also downgraded its sales forecast, projecting 444,530 transactions in 2026, a 5.2 per cent decline from last year, followed by 4.4 per cent rebound in 2027.
“With housing affordability already stretched, the big question going forward is how much farther will the bank have to go to keep a lid on inflation next year?” Cathcart said. “Until that becomes clearer, this fresh round of uncertainty will likely send some buyers back to the sidelines.”
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