The Canadian housing market appears to be stuck in neutral, with sales activity nearly frozen and prices continuing a gradual descent, according to the latest figures from the Canadian Real Estate Association (CREA).
Sales and Prices Show Minimal Movement
New data released by CREA on Monday reveals that home sales in November edged down by a mere 0.6 per cent compared to October. This marginal decline underscores a market that has lost significant momentum after a period of increased activity earlier in the year.
On the pricing front, the trend also softened. CREA's Home Price Index, a more reliable measure than average prices, declined by 0.4 per cent between October and November. More strikingly, the national average home price was recorded at $682,219 for November. This figure represents a two per cent decrease from the same month in 2024.
A Market in a 'Holding Pattern'
CREA's senior economist, Shaun Cathcart, characterized the current state as a "holding pattern." He noted that the mid-year rally in housing demand has essentially stalled as the market heads into 2026. The broader context shows a more significant yearly drop, with monthly sales activity in November down 10.7 per cent compared to November 2024.
Cathcart suggested that the slight price concessions observed in the data likely reflect sellers' willingness to adjust their expectations to finalize transactions before the year's end. This indicates a subtle shift in bargaining power as the market cools.
What This Means for Buyers and Sellers
The current data paints a picture of a Canadian real estate market in a state of equilibrium, but one tilted slightly in favour of buyers compared to the hotter markets of recent years. The minimal movement in sales and the ongoing price adjustments suggest that both buyers and sellers are exercising caution.
For prospective buyers, the environment may present slightly more negotiating room, especially on properties that have been listed for some time. For sellers, the data underscores the importance of realistic pricing and patience, as the rapid sales and bidding wars of the past have given way to a more measured pace. The market's trajectory into 2026 will depend heavily on broader economic factors, including interest rate decisions and employment figures.
