Market update November 2026: Buyers get cold feet as mortgage rates rise

The rental market stayed fairly flat for a fifth consecutive month in September. But in the sales market, rising mortgage rates and market uncertainty are scaring away homebuyers.

• Rentals.ca reported a national average rent of $2,034 in September. Average asking rents are down 4.2% year-over-year, but only $1 lower than in August.

• Asking rents in Ontario dropped from $2,256 in August to $2,240 in September. They’re also down 4.8% year-over-year, the biggest annual fall of any province.

• In Toronto, the average asking rent fell $16 month-to-month to land at $2,554.

• Homebuyer demand took a hit in September, with the number of sales falling 2.3% compared to August, according to the Canadian Real Estate Association (CREA). CREA’s Senior Economist Shaun Cathcart attributes that to rising fixed mortgage rates, a likely rate hike from the Bank of Canada, and buyer uncertainty.

• The average national home price was $666,538 in September, down 0.4% month over month and 3.4% year over year according to the MLS Home Price Index.

• The average Ontario home price rose 0.4% month-over-month to reach $791,691. However, it’s still down 4.3% year-over-year, the biggest year-over-year fall of any province.

• The six-month trend in housing starts rose slightly in September, says the Canada Mortgage and Housing Corporation, reaching 250,411 new units.