Canadian home sales reached a four-year high in September, according to the Canadian Real Estate Association (CREA).

But sales recorded through Canadian MLS systems slipped 1.7% month-over-month, ending a string of gains that began in April. The decline was driven by lower activity in Greater Vancouver, Calgary, Edmonton, Ottawa, and Montreal, which offset increases in the Greater Toronto Area and Winnipeg.

“While the trend of rising sales that began earlier this year took a breather in September, activity was still running at the highest level for that month since 2021, and that was true in July and August as well,” said Shaun Cathcart, CREA’s senior economist. “With three years of pent-up demand still out there and more normal interest rates finally here, the forecast continues to be for further upward momentum in home sales over the final quarter of the year and into 2026.”

Nationally, actual home sales in September were 5.2% above year-ago levels. New listings edged down 0.8% month over month, while the MLS Home Price Index slipped just 0.1% from August and was down 3.4% year over year. The national average sale price rose 0.7% annually to $676,154.

“While there are more buyers in the market now than at almost any other point in the last four years, sales activity is still below average and well below where the long-term trend suggests it should be,” said Valérie Paquin, CREA’s chair. “As such, we expect things will continue to steadily pick up going forward.”

At the end of September, 199,772 properties were listed for sale nationwide—up 7.5% from a year earlier and close to the long-term average. The national sales-to-new listings ratio eased slightly to 50.7%, consistent with balanced market conditions.

Inventory levels remained tight, with 4.4 months of supply at the end of September, unchanged from July and August and the lowest since January. The long-term average is five months, with readings below 3.6 months indicating a seller’s market.

CREA noted that the national benchmark price has held steady since April following earlier declines, and year-over-year price decreases are expected to narrow through the fourth quarter of 2025.

Pictured: Condominium for sale in Vancouver.