However, there are early signs of an upturn: the identical report indicates that conditions in some local markets are starting to enhance and monthly sales increases are starting to eat away at built-up inventories. Overall, nevertheless, market conditions remain firmly on the client’s side – and that’s reflected in today’s property prices, that are relatively low in comparison with the pandemic-era market. The national reference home price, which excludes the extremes of high and low sales, stays 3% below 2024 levels.
For anyone trying to buy a house in October, this meant good affordability conditions 10 out of 13 of Canada’s major marketsin response to the newest findings Affordability study out of Ratehub.ca. This monthly report measures real-time affordability trends within the country’s 13 largest urban centers, based on real estate data, mortgage rates and the mortgage stress test. Affordability is defined by the quantity of income a buyer would wish to earn to acquire a mortgage for an average-priced home of their city.
Mortgage rates remained largely unchanged through the month, with discounts passed on by lenders only in the ultimate days of October, when the Bank of Canada cut its key rate of interest by 1 / 4 of a percentage point and bond yields fell in response. The average five-year fixed mortgage rate of interest utilized in the study remained the identical September at 4.47%, with a corresponding mortgage stress test of 6.47%.
This meant that for a lot of the month, house prices were the important factor affecting affordability.
Let’s examine how this impacted home purchasing power in markets across Canada in October.
Housing affordability in Canada’s major cities
The table below shows how affordability evolved between September 2025 and October 2025 in Canada’s major real estate markets, based on the income required to acquire a mortgage. Required income is predicated on September and October stress test rates of interest of 6.47% and a mortgage rate of interest of 4.47%.
| City | September average house price |
Average property price in October | Change in property price | September mortgage payments | Mortgage payments in October | Change in monthly payments | Income required in September | October income required | Change in income 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 |
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Canadian cities where affordability has improved
Where in Canada is owning a house cheaper?
With borrowing costs rising and sales starting to indicate signs of recovery, just one real estate market bucked the trend of deteriorating affordability.
Vancouver: Buyer-friendly conditions
Although town of Vancouver remains to be Canada’s most costly real estate market, it saw the biggest improvement in affordability between September and October as sales declined and inventory built continued to extend. According to the Real Estate Agents within the Greater Vancouver Area (GVR), home sales fell 14.3% in October from a 12 months ago and remained 14.5% below the region’s 10-year average.
This caused the common house price to fall by $9,600 per thirty days to $1,132,500 and the income required to buy a house to fall by $1,800. Given this persistently high home price threshold, buyers remain on the protected side; “Even the Bank of Canada’s fourth rate cut this year in October was not enough to attract more buyers back into the market,” GVR chief economist Andrew Lis said within the board’s October note.
Hamilton: Oversupply dampens price growth
The weaker economy has also affected Hamilton’s real estate market. According to the Realtors Association of Hamilton-Burlington, home sales in October remain at 34% of typical monthly levels as continued high supply puts downward pressure on prices, says spokesman Nicolas von Bredow.
“Many hoped that the Bank of Canada’s recent interest rate cut would attract more buyers; however, weakening economic conditions and a decline in migration are likely to continue to weigh on market confidence,” the association said in its October statement.
Hamilton’s median home price fell $6,100 month-on-month in October to $747,200 and the required income fell $1,150, placing town of Golden Horseshoe second in improved affordability.
Edmonton: Back to balance
After a hot rebound in 2024, Edmonton’s housing market has moved back toward balance this 12 months as sales fell 17% annually and latest listings recovered nearly 15%.
