Canadian Home Sales Fall 2.3% as Mortgage Rates Rise

Canadian home sales fell 2.3% month-over-month in September 2026, ending a four-month period of modest growth. According to the Canadian Real Estate Association, the decline was driven by a jump in fixed mortgage rates and market expectations that the Bank of Canada will implement a rate hike before the end of the year.

New listings decreased by 1.8% month-over-month, while the National Composite MLS Home Price Index dropped 0.4% from August and 3.4% compared to September 2025. The national average home price for September was $666,538, representing a 1.6% year-over-year decrease. Despite these declines, market conditions remain relatively balanced, with a national sales-to-new listings ratio of 48.8% and 4.9 months of inventory, both aligning with long-term averages.

Industry leaders noted that the current environment increases negotiating power for prospective buyers but complicates the task of securing mortgages. Experts suggest that sellers will now require more precise pricing strategies to attract buyers in a market where affordability is already stretched and uncertainty regarding future inflation controls persists.