Canadian home sales edged lower at the end of 2025, with transactions falling in December and annual sales down slightly from the previous year, according to new national data.
The number of home sales recorded over Canadian MLS® Systems declined 2.7 per cent on a month-over-month basis in December 2025, the Canadian Real Estate Association said Thursday. For the full year, transactions totalled 470,314 units, down 1.9 per cent from 2024.
The association said sales activity over the year reflected uneven conditions, including a slowdown early in the year, a mid-year rebound and softer momentum heading into the final months.
December decline follows uneven regional slowdowns
CREA said the December pullback did not point to a clear national trend and was instead driven by slower activity in several major markets.
“There doesn’t appear to have been much rhyme or reason to the month-over-month decline in home sales in December, which was simply the result of coincident but seemingly unrelated slowdowns in Vancouver, Calgary, Edmonton, and Montreal,” said Shaun Cathcart, CREA’s senior economist.
“For that reason, it would be prudent for market observers to resist the temptation to trace a line from the end of 2025 into 2026. Rather, we continue to expect sales to move higher again as we get closer to the spring, rejoining the upward trend that was observed throughout the spring, summer, and early fall of last year.”
CREA said actual, non-seasonally adjusted sales activity in December was 4.5 per cent lower than in the same month a year earlier.
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December highlights
CREA reported the following national indicators for December 2025:
National home sales declined 2.7 per cent month-over-month.
Actual (not seasonally adjusted) monthly activity came in 4.5 per cent below December 2024.
The number of newly listed properties dropped 2 per cent on a month-over-month basis.
The MLS® Home Price Index (HPI) dipped 0.3 per cent month-over-month and was down 4 per cent on a year-over-year basis.
The actual (not seasonally adjusted) national average sale price was virtually unchanged (-0.1 per cent) on a year-over-year basis.
New supply declined by 2 per cent from November, marking the fourth consecutive monthly drop. With sales falling slightly more than new listings, the national sales-to-new listings ratio eased to 52.3 per cent from 52.7 per cent in November.
CREA said that ratio remains close to the long-term national average of 54.9 per cent, a range it associates with balanced market conditions.
Inventory remains below long-term norms
There were 133,495 properties listed for sale on all Canadian MLS® Systems at the end of December, up 7.4 per cent from a year earlier but 9.9 per cent below the long-term average for that time of year.
CREA said inventories have been declining since May 2025, reflecting stronger demand during the middle of the year. As a result, active listings could shift back to year-over-year declines around the start of the 2026 spring market.
On a national basis, there were 4.5 months of inventory at the end of December, up slightly from 4.4 months, where the measure had remained since August. The long-term average is five months.
Based on CREA’s benchmarks, a seller’s market would be indicated by inventory levels below 3.6 months, while a buyer’s market would be above 6.4 months.
Prices edge lower month over month
The National Composite MLS® Home Price Index fell 0.3 per cent between November and December, matching the decline recorded the previous month.
CREA said the price movement could reflect some sellers adjusting expectations late in the year, with most of the monthly softening coming from markets in Ontario’s Greater Golden Horseshoe region.
On a non-seasonally adjusted basis, the composite HPI was down 4 per cent compared with December 2024. CREA said year-over-year declines were more pronounced for condo apartments and townhomes, while price drops were smaller for one- and two-storey detached homes.
The national average home price in December was $673,335, virtually unchanged from a year earlier, slipping 0.1 per cent.
Outlook tied to spring market
CREA said the housing market is now entering its seasonally quieter period, with attention turning toward the spring.
“While we remain in the quiet time of year for a little while longer, the spring market is now just around the corner, and it is expected to benefit from four years of pent-up demand, and interest rates that at this point are about as good as they are going to get,” said Valérie Paquin, CREA chair.
“Barring any further major uncertainty-causing events, that means we should see a more active market this year.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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