CALGARY — Housing markets across Canada in July collectively turned in a small sales increase of 0.5% from June, the fourth consecutive increase, according to the monthly report from the Canadian Real Estate Association (CREA).
“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,” said Shaun Cathcart, CREA’s senior economist.
“The more interesting story over the last few months has been below the surface of the headline national numbers, where markets across the country are generally moving back towards balance.”
“That’s true on the Prairies, in Quebec, and on the East Coast, where a majority of sellers’ markets have been steadily cooling off over the past year. More recently, it’s also been true of the markets in BC’s Lower Mainland and Ontario’s Greater Golden Horseshoe, where formerly buyers’ or borderline buyers’ markets have largely shifted back into balanced market territory.”
Cathcart’s highlight numbers from July, in addition to the 0.5% month-over-month sales increase include: Monthly activity came in 5.3% below July last year; the number of newly listed properties declined 1.6% on a month-over-month basis.
The Home Price Index edged up 0.1% month-over-month and was down 3.3% on a year-over-year basis; the national average sale price was up 0.2% on a year-over-year basis; new listings declined by a further 1.6% on a month-over-month basis, marking the third drop in a row.
“Combined with the small increase in sales recorded in June, the national sales-to-new listings ratio tightened to 51.3% in July.” said Cathcart. “This is converging on the long-term average for the national sales-to-new listings ratio of 54.7%. Readings roughly between 45% and 65% are generally consistent with balanced housing market conditions.”
The volatility in housing markets experienced over the last five years is no longer a major influencer of markets, said Garry Bhaura, CREA chair.
“The ongoing shift towards a more normal balance between supply and demand in so many markets across Canada is good news for buyers, whether that means not having to worry about your new home falling in value, or not feeling pressured to make a decision due to competing offers,” said Bhaura. “No matter where you are in Canada, more moderate housing market conditions can be expected to continue to bring buyers off the sidelines going forward.”
The inventory of homes listed for sale in July, 205,388 properties, increased 0.6% from July last year, and 1.5% above the long-term average for the time of the year.
“Overall supply has been sliding sideways and is very close to average levels for over a year now,” said Cathcart. “There were 4.7 months of inventory on a national basis at the end of July, the lowest level so far in 2026 and slightly below the long-term average for the measure of five months.”
“Based on one standard deviation above and below that long-term average, a seller’s market would be below 3.6 months, and a buyer’s market would be above 6.4 months.”
Most markets are in or verging on favouring buyers,” said Bhaura.
“With the exceptions of Saskatchewan, New Brunswick, and Newfoundland and Labrador which are still borderline sellers’ markets, other provinces have seen their months of inventory converging towards long-term averages in recent months,” he said. “Notably, even Ontario’s months of inventory measure was only about a half standard deviation above average in July after having been in a buyers’ market condition for the first four months of 2026.”
The non-seasonally adjusted national average home price was $674,819 in July, edging up 0.2% from July last year.
