Canada’s housing market showed further signs of recovery in June, with national home sales rising for a third consecutive month and home prices holding steady after more than a year of declines, according to the latest data from the Canadian Real Estate Association (CREA).

Home sales continued to climb, while new listings fall

National home sales edged up 0.5% from May to June. The increase builds on a 5.5% jump in May and a 0.9% gain in April, placing activity roughly 7% above where it stood in March. The recovery has been led by Ontario, with a more muted increase in British Columbia and mixed results across other parts of the country.

“June’s housing numbers continued to build momentum following the late start to the year in May, with virtually every metric moving in the right direction,” said Shaun Cathcart, CREA’s Senior Economist, in the monthly report. “Looking ahead, fixed mortgage rates have eased from their peak in April, and rate hikes from the Bank of Canada this year are much less likely than they were just a month ago. This is good news for borrowers. Additionally, home prices are no longer falling in most of the markets where they were previously, which had likely been keeping a lot of buyers waiting on the sidelines. As such, we continue to expect the second half of the year to be quite a bit more active than the first half, similar to sales activity in 2024 and 2025.”

The number of newly listed homes fell 1.3% from May to June, marking a second consecutive monthly decline.

Combined with the rise in sales, the national sales-to-new listings ratio tightened to 50.2%, up from 49.3% in May. It was the first time this year the measure climbed back above the 50% mark. Readings between 45% and 65% are generally consistent with balanced housing market conditions, with the long-term average sitting at 54.8%.

There were 208,578 properties listed for sale across Canadian MLS® Systems at the end of June, up just 0.6% from a year earlier and slightly above the long-term average for this time of year. Nationally, there were 4.8 months of inventory, unchanged from May and the lowest level so far in 2026.

Home prices held steady

The National Composite MLS® Home Price Index was flat from May to June, the first time the measure has not declined on a month-over-month basis since January 2025.

Compared to a year earlier, the index was down 3.6%, the smallest annual decline since last October. Prices remain lower year over year in British Columbia, Alberta and Ontario, though those declines continue to shrink as prices stabilize. Nova Scotia posted its first annual price decline in more than three years as that market cools.

The national average home price was $696,078 in June, up 0.5% from the same month last year.

“The last couple of months have seen the return of more certainty around both interest rates and home values, along with an increasing number of buyers in the market,” said Garry Bhaura, CREA Chair. “We may see a brief pause in that trend as Canadians enjoy their summer, but the stage is set for a busier fall market. That usually comes to life after Labour Day, which gives buyers and sellers a bit of time to do their research, make a plan, and get homes ready to list.”

CREA updated its forecast for 2026 and 2027

Alongside the June data, CREA revised its outlook for home sales and prices through 2027.

Fixed mortgage rates jumped in late March amid inflation concerns tied to high oil prices, but have since partially eased. Rate hikes by the Bank of Canada this year have largely been taken off the table, positive news for both fixed- and variable-rate borrowers.

Some 463,336 residential properties are forecast to change hands in 2026, a 1.4% decline from 2025. The slight downward revision reflects a weak first half of the year and a faster-than-expected slowdown in regions facing reduced population growth and long-standing supply shortages, notably Quebec and the East Coast. Ontario is now the only province forecast to see annual sales increase in 2026.

A more active second half of the year is still expected, similar to the pattern that played out in 2024 and 2025.

The national average home price is forecast to rise 1.1% to $686,710 in 2026. Alberta stands out on the price side, with values resuming their climb in the second quarter, while Newfoundland and Labrador remains the country’s last province in full seller’s market territory.

In 2027, national home sales are forecast to climb 3.7% to 480,567 units, supported by slow but positive economic growth, stable interest rates and steady or modestly rising home prices in most regions. The national average home price is forecast to reach $694,164, marking the sixth and seventh consecutive years the measure has hovered near the $700,000 mark.