Canadian Home Sales Show Signs of Stabilization in July

📅 5 days ago 🏷️ Canadian Real Estate Association

July's housing market data reveals a slight increase in home sales and a continued trend towards a balanced market across Canada, as supply levels approach historical averages.

In July, the Canadian housing market demonstrated a continuation of trends observed in June, with home sales experiencing a modest increase, while listings decreased and prices remained stable. Shaun Cathcart, the Senior Economist at the Canadian Real Estate Association (CREA), noted, "At the national level, July’s housing data was a carbon copy of the June numbers, with home sales edging up a little further, listings down, and prices remaining stable." However, he indicated that a more intriguing narrative lies beneath these headline figures, as markets across Canada seem to be gradually returning to a state of balance. This trend is evident not only in the Prairies and Quebec but also on the East Coast, where many previously dominant sellers' markets have been cooling off steadily over the past year. Recently, the housing markets in British Columbia’s Lower Mainland and Ontario’s Greater Golden Horseshoe have also shifted from being buyers' markets to more balanced conditions.
The highlights from July include a 0.5% month-over-month increase in national home sales, though the actual monthly activity was reported to be 5.3% lower than in July 2025. The number of newly listed properties saw a decline of 1.6% from the previous month, marking a continuation of decreasing listings. The MLS® Home Price Index (HPI) experienced a slight month-over-month increase of 0.1%, yet it remains down 3.3% compared to the same month last year. In terms of average sale prices, the national average posted a year-over-year increase of 0.2% in July 2026.
As July concluded, there were 205,388 properties listed for sale across all Canadian MLS® Systems, reflecting a modest increase of 0.6% from a year prior and sitting just 1.5% above the long-term average for this time of year. The overall supply of homes has remained relatively stable, hovering near average levels for over a year, with the inventory standing at 4.7 months at the end of July, the lowest for 2026 thus far and slightly below the long-term average of 5 months. This inventory level is indicative of a market that is approaching equilibrium, as readings below 3.6 months suggest a seller’s market and those above 6.4 months indicate a buyer’s market.
Most provinces have seen their months of inventory move closer to long-term averages, with the exception of Saskatchewan, New Brunswick, and Newfoundland and Labrador, which are still categorized as borderline sellers' markets. Notably, Ontario's inventory levels have also stabilized, moving only slightly above average after experiencing a buyers' market at the beginning of 2026.
The National Composite MLS® HPI rose by 0.1% from June to July, marking the first increase in this index since November 2024. However, it still reflects a 3.3% decline compared to June 2025. Year-over-year decreases in home prices have been diminishing since January, with July’s report indicating the smallest decline since October 2025. The non-seasonally adjusted national average home price reached $674,819 in July 2026, representing a slight year-over-year increase of 0.2%.
The next statistics package from CREA is scheduled for publication on September 15, 2026. It is important to note that the information in this release aggregates both major market and national sales data from MLS® Systems from the previous month. CREA warns that while average price figures can be useful for identifying trends over time, they may not accurately reflect actual prices in areas with significantly varying neighborhoods or account for geographic price differentials. The statistical data presented here encompasses all types of housing. MLS® Systems are collaborative marketing platforms utilized exclusively by Canadian real estate boards to maximize the exposure of listed properties for sale.

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