Key facts
- Canadian home sales rose 0.5% month-over-month in July, marking the fourth consecutive monthly increase.
- The MLS® Home Price Index (HPI) saw a 0.1% increase month-over-month, the first rise since November 2024.
- Year-over-year, home sales were down 5.3% and the HPI was down 3.3%.
- Newly listed properties decreased by 1.6% month-over-month, the third consecutive decline.
- The national sales-to-new listings ratio reached 51.3%, approaching the long-term average of 54.7%.
Canadian home sales continued their upward trend in July, marking the fourth consecutive month of gains, according to data from the Canadian Real Estate Association (CREA). Sales increased by 0.5% from June to July, while the national Home Price Index (HPI) edged up 0.1% month-over-month, its first increase since November 2024. Despite the monthly gains, year-over-year sales were down 5.3% and the HPI was down 3.3%.
Newly listed properties saw a decline of 1.6% month-over-month, contributing to a national sales-to-new listings ratio of 51.3%, which is nearing the long-term average of 54.7%. This ratio is generally consistent with balanced housing market conditions.
Shaun Cathcart, CREA's Senior Economist, noted that the national data was similar to June's, with sales edging up, listings down, and prices stable. He highlighted that beneath the headline numbers, markets across Canada are generally moving back towards balance, with many formerly seller's markets cooling and buyer's markets shifting to balanced territory.
Garry Bhaura, CREA Chair, stated that the shift towards more balanced market conditions is positive for buyers, reducing pressure from competing offers. He anticipates more moderate housing market conditions will encourage buyers to return to the market.
At the end of July, there were 205,388 properties listed for sale nationally, a slight increase of 0.6% from the previous year. The months of inventory stood at 4.7 months, the lowest so far in 2026 and slightly below the long-term average of 5 months. Most provinces are seeing their inventory levels converge towards long-term averages, with only Saskatchewan, New Brunswick, and Newfoundland and Labrador remaining borderline seller's markets.