Canadian Housing Market Shows Signs of Recovery in June 2026

📅 2 days ago 🏷️ Canadian Real Estate Association

June 2026 marks a turning point for the Canadian housing market, with increased sales activity and stabilizing home prices, according to CREA's latest report.

In June 2026, the Canadian housing market displayed encouraging signs of recovery, as various metrics indicated a positive shift following a slow start earlier in the year. Shaun Cathcart, the Senior Economist at the Canadian Real Estate Association (CREA), remarked, "June's housing numbers continued to build momentum following the late start to the year in May, with virtually every metric moving in the right direction." He highlighted that fixed mortgage rates have decreased from their peak in April, which, combined with diminished expectations for further rate hikes from the Bank of Canada, presents favorable conditions for borrowers.
The market dynamics are shifting, as home prices in many regions are stabilizing after a period of decline, which had previously led many potential buyers to wait on the sidelines. Cathcart anticipates that the second half of the year will be significantly more active than the first, mirroring sales activity trends expected in 2024 and 2025.
The highlights for June include a 0.5% increase in national home sales compared to the previous month, alongside a 0.9% rise in actual monthly activity compared to June 2025. However, the number of newly listed properties saw a decline of 1.3% month-over-month. The MLS® Home Price Index (HPI) remained stable month-over-month, although it was down 3.6% year-over-year. The actual national average sale price increased by 0.5% compared to the same month last year, reaching $696,078 in June 2026.
Despite the slight uptick in sales, the number of new listings fell for the second consecutive month, leading to a tightening in the national sales-to-new listings ratio, which increased to 50.2%, surpassing the 50% mark for the first time this year. This ratio is an important indicator of market balance, with long-term averages suggesting a healthy market lies between 45% and 65%.
Garry Bhaura, the CREA Chair, noted, "The last couple of months have seen the return of more certainty around both interest rates and home values, along with an increasing number of buyers in the market." He indicated that while a brief pause in activity might occur during the summer months, the market is poised for a busy fall, particularly after Labour Day, when many buyers and sellers will begin to prepare for transactions.
At the end of June 2026, there were 208,578 properties listed for sale across all Canadian MLS® Systems, marking a 0.6% increase from the previous year and slightly above the long-term average. The inventory level remained stable at 4.8 months, which is the lowest level recorded in 2026, and is just below the long-term average of five months.
The National Composite MLS® Home Price Index held steady from May to June, marking the first month without a decline since January 2025. Year-over-year, prices in regions like British Columbia, Alberta, and Ontario are still down, but the declines are diminishing, indicating stabilization. Nova Scotia also saw its first year-over-year price drop in over three years, reflecting a cooling off in the market.
The next set of statistics from CREA is scheduled for release on Tuesday, August 18, 2026, providing further insight into the evolving housing landscape. This report consolidates data from major markets and national sales information from the previous month. CREA advises that while average price information can help identify trends, it may not accurately reflect prices in diverse neighborhoods.
For further inquiries, Pierre Leduc from CREA's Media Relations can be contacted at 613-237-7111 or via email at [email protected].

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