Nonetheless, there are some inexperienced shoots—the identical report signifies situations are beginning to agency up in some native markets, with month-to-month gross sales will increase beginning to eat into built-up stock. Total, although, market situations stay firmly in consumers’ favour—and that’s mirrored in at the moment’s house costs, that are comparatively mushy in comparison with the pandemic-era market. The nationwide house value benchmark, which strips out the excessive and low gross sales extremes, stays 3% beneath 2024 ranges.
For anybody trying to purchase a house in October, that meant first rate affordability situations in 10 of 13 of Canada’s main markets, based on the newest affordability research from Ratehub.ca. This month-to-month report gauges how affordability evolves in actual time within the nation’s 13 largest city centres, based mostly on actual property knowledge, mortgage charges, and the mortgage stress check. Affordability is outlined by the quantity of revenue a purchaser would wish to earn to qualify for a mortgage on the average-priced house of their metropolis.
Mortgage charges have been largely unchanged over the course of the month, with reductions solely handed on by lenders in the direction of the ultimate days of October, when the Financial institution of Canada lower its benchmark fee by 1 / 4 of a proportion level, and bond yields dipped in response. The typical five-year mounted mortgage fee used within the research stayed the identical as September at 4.47%, with a corresponding mortgage stress check of 6.47%.
That meant for almost all of the month, house costs have been the principle issue impacting affordability.
Let’s unpack how this impacted house buying energy in markets throughout Canada in October.
Housing affordability throughout Canada’s main cities
The desk beneath reveals how affordability developed between September 2025 and October 2025, in Canada’s important housing markets, based mostly on the revenue required to qualify for a mortgage. Revenue required relies on the stress check charges of 6.47% in each September and October, together with a mortgage fee of 4.47%.
| Metropolis | September common house value |
October common house value | Change in house value | September mortgage funds | October mortgage funds | Chnage in month-to-month funds | September revenue required | October revenue required | Change in revenue required |
|---|---|---|---|---|---|---|---|---|---|
| Vancouver | $1,142,100 | $1,132,500 | -$9,600 | $5,848 | $5,799 | -$49 | $232,700 | $230,900 | -$1,800 |
| Hamilton | $753,300 | $747,200 | -$6,100 | $3,857 | $3,826 | -$31 | $158,550 | $157,400 | -$1,150 |
| Edmonton | $417,000 | $412,100 | -$4,900 | $2,135 | $2,110 | -$25 | $94,410 | $93,470 | -$940 |
| Ottawa | $627,200 | $622,700 | -$4,500 | $3,211 | $3,188 | -$23 | $134,500 | $133,640 | -$860 |
| Victoria | $877,900 | $873,600 | -$4,300 | $4,495 | $4,473 | -$22 | $182,310 | $181,500 | -$810 |
| Toronto | $960,300 | $956,800 | -$3,500 | $4,917 | $4,899 | -$18 | $198,030 | $197,360 | -$670 |
| Calgary | $567,900 | $565,200 | -$2,700 | $2,908 | $2,894 | -$14 | $123,200 | $122,700 | -$500 |
| St. John’s | $402,100 | $400,200 | -$1,900 | $2,059 | $2,049 | -$10 | $91,570 | $91,200 | -$370 |
| Regina | $337,000 | $335,100 | -$1,900 | $1,726 | $1,716 | -$10 | $79,150 | $78,800 | -$350 |
| Winnipeg | $381,500 | $380,800 | -$700 | $1,953 | $1,950 | -$3 | $87,650 | $87,500 | -$150 |
| Montreal | $578,900 | $581,500 | $2,600 | $2,964 | $2,977 | $13 | $125,300 | $125,780 | $480 |
| Halifax | $559,100 | $563,300 | $4,200 | $2,863 | $2,884 | $21 | $121,510 | $122,310 | $800 |
| Fredericton | $341,000 | $348,500 | $7,500 | $1,746 | $1,784 | $38 | $79,910 | $81,350 | $1,440 |
This report is for illustration functions solely. Information relies on a mortgage with a ten% down fee, 25-year amortization, $4,000 annual property taxes and $150 month-to-month heating. Mortgage charges are the typical of the Massive 5 Banks’ 5-year mounted charges in September and October 2025. Common house costs are from the CREA MLS® Residence Value Index (HPI).
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Canadian cities the place affordability improved
The place in Canada is proudly owning a house changing into extra reasonably priced?
Amid firming borrowing prices and early indicators of recovering gross sales, only one housing market bucked the traits of worsening affordability.
Vancouver: Situations tilted in the direction of consumers
Whereas nonetheless Canada’s most costly actual property market, the Metropolis of Vancouver skilled the best enchancment in affordability between September and October, as gross sales dropped and built-up stock continued to increase. In keeping with knowledge from the Larger Vancouver Realtors (GVR), house gross sales decreased 14.3% 12 months over 12 months in October, remaining 14.5% beneath the area’s 10-year common.
That resulted within the common house value to fall $9,600 on a month-to-month foundation, to $1,132,500, and the required revenue to buy a house by $1,800. Given this persistently excessive house value threshold, consumers stay firmly on the sidelines; “Even the fourth lower this 12 months to the Financial institution of Canada’s coverage fee this October wasn’t sufficient to entice extra consumers again into the market,” mentioned GVR Chief Economist Andrew Lis, within the board’s October launch.
Hamilton: Oversupply places the nippiness on value development
Slower financial situations have additionally put the damper on Hamilton actual property; based on the Realtors Affiliation of Hamilton-Burlington, October house gross sales stay 34% typical ranges for the month, as persistently excessive provide ranges put downward stress on costs, says spokesperson Nicolas von Bredow.
“Many have been hopeful that the latest coverage fee lower from the Financial institution of Canada would appeal to extra consumers; nonetheless, slowing financial situations and a lower in migration are possible persevering with to weigh on confidence available in the market,” he states within the affiliation’s October launch.
Hamilton’s common house value dropped $6,100 month over month in October to $747,200, and the required revenue by $1,150, inserting the Golden Horseshoe metropolis in second place by way of improved affordability.
Edmonton: Easing again to steadiness
After a sizzling run in 2024, Edmonton’s housing market has eased in the direction of steadiness this 12 months, as gross sales have chilled 17% yearly, and new listings have recovered by practically 15%.
