Canada's Home Sales Show Gradual Recovery in July 2026

📅 2 days ago

Home sales in Canada saw a modest increase in July, continuing a trend of stabilization in the housing market as inventory levels remain close to historical averages.

In July 2026, Canada witnessed a slight uptick in national home sales, with a month-over-month increase of 0.5%, according to the latest data from the Canadian Real Estate Association (CREA). This marks the fourth consecutive month of growth in home sales, mirroring the trends observed in June. However, the actual activity remains 5.3% lower than the same period last year, indicating a continued cooling in the market despite the recent gains.
New listings experienced a decline of 1.6% compared to the previous month, representing the third consecutive monthly drop. As a result, the national sales-to-new listings ratio tightened to 51.3%, which is near the long-term average of 54.7% and comfortably within CREA's defined balanced range of 45%-65%. Shaun Cathcart, CREA's senior economist, remarked that the data from July closely resembles June's figures, with home sales inching upward, listings decreasing, and prices stabilizing.
Cathcart highlighted a more nuanced story beneath these overall statistics, noting that several markets across the Prairies, Quebec, and the East Coast have been progressively moving away from seller's-market conditions over the past year. Recently, similar trends have emerged in British Columbia's Lower Mainland and Ontario's Greater Golden Horseshoe, both of which have transitioned back into balanced market conditions after previously being classified as buyers' or borderline buyers' markets.
At the close of July, a total of 205,388 properties were listed for sale on Canadian MLS Systems, reflecting a modest increase of 0.6% from the previous year and a 1.5% rise above the long-term seasonal average. Inventory levels have remained close to this average for over a year. The months of inventory were recorded at 4.7 nationally, the lowest figure observed in 2026 thus far, and just shy of the long-term average of 5 months. CREA defines a seller's market as having less than 3.6 months of inventory and a buyer's market as having more than 6.4 months.
Certain provinces, including Saskatchewan, New Brunswick, and Newfoundland and Labrador, continue to stay in borderline seller's-market conditions. In contrast, Ontario has made significant strides; after four months of experiencing buyer's-market conditions at the start of 2026, the province's months-of-inventory reading in July was only marginally above average.
On the pricing front, the National Composite MLS Home Price Index saw a slight increase of 0.1% from June to July, marking the first month-over-month rise in the index since November 2024. Despite being down 3.3% year-over-year, this decline has been steadily decreasing since January, with July's figures indicating the smallest annual drop since October 2025. The non-seasonally adjusted national average home price reached $674,819 in July, up 0.2% from the same month last year.
Garry Bhaura, CREA's chair, expressed optimism regarding the ongoing transition towards a more balanced supply-demand dynamic across many Canadian markets. He noted that this shift is beneficial for buyers, alleviating concerns about potential declines in home value and reducing the pressure to make swift decisions amid competing offers. He anticipates that these moderating conditions will encourage more buyers to enter the market in the near future.

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