Canadian home prices post first month-over-month increase since 2024 in July

The Canadian Real Estate Association (CREA) reported that July home sales in Canada declined by 5.3% compared to the previous year, though there was a slight increase month-over-month. Nationally, homes sold totaled 43,578, marking a 5.3% decrease from July 2025. Adjusted for seasonal variations, activity rose by 0.5% compared to June 2026.

Shaun Cathcart, CREA's senior economist, noted that while national figures remained consistent with June's numbers, the broader picture revealed markets across Canada moving towards a more balanced state.

Certain provinces, including Saskatchewan, New Brunswick, and Newfoundland and Labrador, were still experiencing seller's markets. In contrast, other regions showed inventory levels nearing their long-term averages. Ontario's months of inventory showed only a slight increase, remaining just half a standard deviation above the average after being in a buyer's market condition for the first four months of 2026.

On a year-over-year basis, the average sale price of homes in July was $674,819, reflecting a 0.2% increase. The CREA's home price index, which gauges the sale of typical homes, increased by 0.1% month-over-month but dropped by 3.3% compared to the same period last year. Regionally, prices experienced declines in Ontario and British Columbia, while other areas witnessed price gains.

CREA indicated a 1.6% month-over-month decrease in new listings, marking the third consecutive decline in this category. As of July, there were 205,388 properties listed for sale across Canada, up 0.6% year-over-year but only 1.5% above the long-term average.