Toronto Home Sales Fall 8% in October as Buyers Stay on the Sidelines
Canada's two biggest housing markets cooled again in October. Sales fell nearly 8% across the Greater Toronto Area and more than 10% in Metro Vancouver compared with a year ago. Both real estate boards point to borrowing costs and economic uncertainty as the main reasons buyers are holding back.
It was the first full month of data since the Bank of Canada raised its policy rate to 2.5% on October 28, its first increase since 2023.
Toronto: Fewer Sales, Lower Prices, Fewer Listings
According to the Toronto Regional Real Estate Board (TRREB), 5,603 homes sold across the GTA in October, down 7.9% from October 2025. There is one bright spot: on a seasonally adjusted basis, sales were up 1.2% from September.
Prices continued to ease:
Average selling price: $1,024,108, down 2.7% from a year ago
Benchmark price (the "typical" home): down 4.3% year over year
Supply is shrinking as well. New listings fell 11.9% to 14,173, and active listings were down 10% from a year earlier, leaving 25,098 homes for sale across the region.
TRREB says many would-be buyers are watching Canada-U.S. trade talks and the conflict in the Middle East, hoping for more clarity on inflation and the economy before they make a move.
Vancouver: Sales Well Below Normal
In Metro Vancouver, Greater Vancouver Realtors reported 2,024 sales in October, down 10.2% from last year and 22.5% below the 10-year average for the month.
Average price: $1,068,600, down 5.2% from a year ago and 0.7% lower than in September
New listings: 4,805, down 11.6% year over year
The board said buyers are holding off because of rising interest rates and the uncertainty created by U.S. tariffs.
Why Buyers Are Hesitating
The slowdown comes as the cost of borrowing heads higher. Inflation is running at 3.1%, well above the Bank of Canada's 2% target, and the Bank raised rates in October to keep it from spreading. It has also said further increases are possible. When buyers aren't sure where rates or the economy are headed, many choose to wait.
What This Means for You
Buyers: Softer prices and less competition can work in your favour. Listings are falling too, though, so this isn't a market with unlimited choice. A pre-approval with a rate hold lets you lock in today's rate while you shop, which protects you if rates rise again.
Sellers: Buyers are price-sensitive right now. Pricing realistically from the start matters more than usual, and if you're buying and selling at the same time, it's worth planning your financing for both before you list.
Homeowners renewing soon: Rates are higher than they were a few months ago. If your term ends in the next 6 to 12 months, start the conversation early so you have time to compare options.
Thinking of waiting? Waiting for lower prices could mean facing higher rates. The right move depends on your budget and timeline, and a quick conversation can help you weigh both.
Bottom Line
October's numbers show buyers in Toronto and Vancouver are still cautious, with sales and prices down from last year and fewer homes coming to market. Much will depend on where rates and the economy go next. The Bank of Canada's next rate decision is December 9. Whether you're buying, selling or renewing, the Admore team can help you build a plan that works in this market.
Sources:
Baystreet.ca – Toronto Home Sales Declined 8% In October, Vancouver Sales Fell 10%
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