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Canadian Real Estate Prices Hit a 4-Year Low — And HELOC Debt Is Surging.

Canada’s housing market is slipping deeper into a correction — and October’s numbers confirm it.
November 24, 2025 by
Canadian Real Estate Prices Hit a 4-Year Low — And HELOC Debt Is Surging.
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New CREA data shows that home prices have fallen to their lowest level since 2021, even as interest rates ease and incentives return. Yet sales continue to cool, and sellers are flooding the market at a pace we haven’t seen in a decade.

For homeowners feeling the squeeze — especially those carrying HELOCs, rising debt, or upcoming renewals — this is a critical moment to understand what’s happening and why.

📉 Home Prices Drop to a 4-Year Low

The benchmark price for a typical Canadian home fell to $679,900 in October, sliding:

  • 0.4% month-over-month (-$2,700)

  • 3% year-over-year (-$21,000)

  • 20.2% below the March 2022 peak (-$171,700)

Most of the pandemic boom gains have now been wiped out — but not enough to fix affordability. Prices may be down, but incomes haven’t caught up, leaving buyers on the sidelines and sellers increasingly nervous.

🏠 Home Sales Fall Below 2019 Levels

October posted only 42,068 sales across Canada, marking:

  • A 4.3% decline from last year

  • A staggering 29.1% drop from the same month in 2020

  • 6.1% fewer sales than pre-pandemic 2019

This isn’t just a cooldown — it’s one of the quietest Octobers for buyers in recent memory. Despite lower rates and buyer incentives, demand simply isn’t returning fast enough.

📈 New Listings Hit a Record High — Inventory Floods the Market

Sellers, meanwhile, are coming out in full force.

October recorded 79,225 new listings, a record for the month, and up 4.3% from 2024.

This surge mirrors what we’ve seen in Toronto — Canada’s bellwether market — where inventory is piling up at a pace that typically spreads to smaller cities months later.

With more supply and fewer buyers, pressure on prices is building.

📊 SNLR Drops to the Lowest October Level Since 2012

The sales-to-new listings ratio (SNLR) fell to 53%, the weakest October reading in over a decade.

Historically:

  • An SNLR below 55% has never produced price growth in October

  • In 2022, an SNLR of 56% still caused one of the biggest monthly price drops on record

Translation: there’s still downward pressure on prices — and more could be coming.

💳 Meanwhile… HELOC Debt Is Quietly Exploding

As prices fall and refinancing gets tougher, Canadians are leaning heavily on home equity lines of credit (HELOCs) to stay afloat.

Rising HELOC balances + falling home values = shrinking equity cushions.

This is where many homeowners get caught off-guard — especially if:

  • Renewals are approaching

  • Variable-rate HELOC payments have spiked

  • Debt consolidation is overdue

  • Cashflow is tight and equity is their only safety net

This is exactly the scenario where fast, flexible private lending becomes a lifeline.

What This Means for Ontario Homeowners

The market is shifting — fast.

Prices are falling. Inventory is rising. HELOC debt is ballooning. And banks are tightening up again.

If you’re:

  • Carrying high-interest debt

  • Facing a renewal you can’t afford

  • Considering selling but don’t want to take a loss

  • Using a HELOC to stay afloat

  • Needing short-term financing while the market recovers

Private mortgage solutions can buy you time and protect your equity.

And that’s where Lendworth comes in.

Need Cash Fast? Lendworth Approves in Hours — Not Weeks

Ontario homeowners turn to Lendworth because we specialize in fast, equity-based mortgages, even when banks say no.

**✔ Same-day approvals

✔ Funding in 24–48 hours

✔ No income or credit score requirements

✔ Up to 80% LTV

✔ We work directly with your lawyer

✔ Perfect for HELOC consolidation, arrears, repairs, or emergency cashflow**

This is one of the fastest ways to access your equity while keeping full control of your home.

📞 Talk to a Specialist Today

If you’re unsure how falling prices and rising HELOC debt affect your home, your options, or your equity:

Call Lendworth at 905-597-1225

or apply online below.

👉 Apply Now: Apply Here

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