Housing and mortgage markets from Toronto to Vancouver saw shifting dynamics in September
Canada’s major housing markets showed signs of recalibration in September, as rising inventories and shifting buyer sentiment created new opportunities and challenges for mortgage professionals and their clients.
Across the country, the interplay between interest rates, supply, and affordability continued to define the landscape. While some regions saw a surge in activity, others experienced a marked slowdown, underscoring the complexity of the national picture.
Calgary’s market tips toward buyers as supply surges
Calgary’s housing market saw a 14% drop in sales and a 36% increase in inventory in September compared to last year, according to the Calgary Real Estate Board.
“Supply levels have been rising in the resale, new home and rental markets. The additional supply choice is coming at a time when demand is slowing, mostly due to slower population growth and persistent uncertainty,” Ann-Marie Lurie, CREB chief economist, said.
The city’s months of supply reached 4.02, the highest since early 2020, reflecting a clear shift away from the seller’s market of recent years. The apartment sector led the correction, with benchmark prices down over 6% to $322,900 and inventory swelling to nearly 2,000 units.
“The most significant adjustment in the market occurred in the apartment condominium sector as improving rental supply, delayed adjustments in interest rates and improved selection for other property types has slowed apartment style demand from both first-time buyers and investors,” the CREB report noted.
Detached home prices slipped nearly 1% to $749,900, with the steepest declines in the North East and East districts. Row house prices dropped almost 5% from last year.
Montreal and Quebec City buck the trend with sales surge
In contrast, Montreal’s residential market posted an 11% jump in sales, with 3,520 transactions, well above the 25-year average for September, according to the Quebec Professional Association of Real Estate Brokers.
“This result is well above historical benchmarks, with approximately 620 more transactions than the average for September over the past 25 years,” the association said.
Median prices continued to climb: single-family homes in Montreal CMA hit $632,500 (up 7%), and condos reached $430,000 (up 4%). Quebec City saw single-family prices rise 13% to $427,750, and condos up 16% to $315,000. New listings in Montreal jumped 17%, with active listings up 8%, suggesting sellers are returning after a period of hesitation.
Vancouver and Toronto: Buyers gain leverage, prices ease
Metro Vancouver saw a modest 1.2% uptick in sales to 1,875, but activity remained well below the 10-year average. Inventory rose 14.4% to 17,079 homes, and the composite benchmark price fell 3.2% year-over-year to $1,142,100.
“Easing prices, near-record high inventory levels, and increasingly favourable borrowing costs are offering those looking to purchase a home this fall with plenty of opportunity,” Andrew Lis, GVR’s director of economics and data analytics, said.
The GTA condo meltdown is about more than rates. CMHC Economist Jordan Nanowski confirms federal cuts to immigration targets hit Toronto hardest, as the city typically receives ~30% of new arrivals.https://t.co/8ud5Gf1Zcd#TorontoRealEstate #CondoCrisis #GTAHousing
— Canadian Mortgage Professional Magazine (@CMPmagazine) September 30, 2025
In the Greater Toronto Area, sales climbed 8.5% to 5,592, as buyers responded to the Bank of Canada’s September rate cut.
“With lower borrowing costs, more households are now able to afford monthly mortgage payments on a home that meets their needs,” Toronto Regional Real Estate Board President Elechia Barry-Sproule said. However, the average selling price slipped nearly 5% to $1,059,377.
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