OTTAWA — Canada’s housing market showed signs of moving toward greater balance in July, even as home sales remained below last year’s levels, according to the Canadian Real Estate Association (CREA).
A total of 43,578 homes changed hands across Canada in July, representing a 5.3% decline from July 2025. On a seasonally adjusted basis, however, sales increased 0.5% compared with June.
CREA said the latest figures point to relatively stable national conditions, with sales edging higher, new listings continuing to decline and prices remaining broadly steady.
Regional markets moving closer to balance
While national figures remain relatively subdued, CREA said the more significant change is occurring beneath the headline numbers as housing markets across Canada gradually move toward more balanced conditions.
Saskatchewan, New Brunswick and Newfoundland and Labrador remain close to sellers’ market territory, while inventory levels in many other provinces have moved closer to their historical averages.
Ontario has also shown signs of improvement from the buyers’ market conditions seen earlier in the year. CREA said the province’s months of inventory measure was only around half a standard deviation above its long-term average in July, compared with the stronger buyer conditions recorded during the first four months of 2026.
Shaun Cathcart, CREA senior economist, said July’s national figures were broadly similar to those recorded in June, while the more important development was the gradual rebalancing taking place across regional markets.
Home prices remain relatively stable
The national average price of a home sold in July was $674,819, an increase of 0.2% compared with the same month last year.
CREA’s Home Price Index, which is designed to reflect the price of a typical home rather than the average transaction price, increased 0.1% month over month.
Despite the monthly improvement, the index remained 3.3% below its level from a year earlier.
Price performance continued to vary considerably across the country. Home prices declined year over year in Ontario and British Columbia, while other regions recorded annual increases.
New listings continue to decline
Supply conditions also shifted during July.
New listings fell 1.6% from June, marking the third consecutive monthly decline.
At the end of July, approximately 205,388 properties were listed for sale across Canada. That was 0.6% higher than a year earlier and only 1.5% above the long-term average.
The combination of fewer new listings, relatively stable prices and modestly higher monthly sales suggests that the Canadian housing market is gradually moving away from the more pronounced imbalances seen in some regions earlier in 2026.
CREA’s latest figures point to a market where buyers and sellers are increasingly operating under more balanced conditions, although regional differences remain significant.
