Key facts
- Canadian home sales rose 0.5% month-over-month in June.
- The national Home Price Index was unchanged from May to June.
- Year-over-year, the Home Price Index decreased by 3.6%.
- New listings fell 1.3% month-over-month.
- The sales-to-new listings ratio exceeded 50% for the first time this year.
Canadian home sales saw a modest increase of 0.5% in June compared to the previous month, following a significant jump in May, according to data released by the Canadian Real Estate Association (CREA). The national Home Price Index remained unchanged month-over-month, but was down 3.6% year-over-year. Newly listed properties declined by 1.3% from May to June.
The sales-to-new listings ratio rose to 50.2% in June, surpassing the 50% mark for the first time this year, indicating a shift towards more balanced market conditions. The Greater Toronto Area (GTA) has been a primary driver of the recent recovery in sales activity, with transactions increasing by a cumulative 17.3% since April.
Despite the recent uptick in sales, CREA has downgraded its forecast for the total number of homes expected to be sold in 2025, projecting a 3% decline from 2024. The national average home price is now forecast to fall 1.7% annually to $677,368 in 2025. Senior Economist Shaun Cathcart noted that while the market faced a chaotic start to the year, the data suggests a delayed rebound may be underway, though he cautioned about potential impacts from U.S. tariff threats.