Canada’s housing market extended its gradual recovery in July, with national home sales rising for a fourth consecutive month, and the national home price index posting its first month-over-month increase in more than a year and a half. This is according to the latest report from the Canadian Real Estate Association (CREA).

Sales edged higher while new listings pulled back

The number of homes sold over Canadian MLS® Systems rose 0.5% from June to July, marking a fourth consecutive monthly gain and building on the momentum that returned to the market in the spring.

Newly listed homes moved in the opposite direction, falling 1.6% month over month – the third decline in a row for new supply.

With sales rising and fewer homes coming to market, the national sales-to-new-listings ratio tightened to 51.3% in July, converging on its long-term average of 54.7%. Readings between 45% and 65% are generally consistent with balanced housing market conditions.

“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, in the report. “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 B.C.’s Lower Mainland and Ontario’s Greater Golden Horseshoe, where formerly buyers’ or borderline buyers’ markets have largely shifted back into balanced market territory.” 

Inventory held close to long-term norms

There were 205,388 properties listed for sale across Canadian MLS® Systems at the end of July, up just 0.6% from a year earlier and 1.5% above the long-term average for this time of year. Overall supply has moved sideways and stayed very close to average levels for more than a year.

Nationally, there were 4.7 months of inventory at the end of July, the lowest level recorded so far in 2026 and slightly below the long-term average of five months. Based on one standard deviation above and below that average, a seller’s market would be below 3.6 months of inventory, while a buyer’s market would be above 6.4 months.

Regionally, months of inventory have been converging toward long-term averages in most parts of the country. Saskatchewan, New Brunswick, and Newfoundland and Labrador remain in borderline sellers’ markets. Ontario spent the first four months of 2026 in buyers’ market territory. By July, inventory there had eased back to only modestly above its long-term average, putting the province close to balanced conditions.

Home prices posted their first monthly increase since late 2024

The National Composite MLS® Home Price Index edged up 0.1% from June to July. It was the first month-over-month increase in the national measure since November 2024.

On a year-over-year basis, the non-seasonally adjusted index was down 3.3% compared to July 2025. Annual declines have been shrinking steadily since January, and the July reading marked the smallest decrease since October 2025.

“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 Garry Bhaura, CREA Chair, in the report. “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.”