Canadian Home Sales Edge Up 0.5% in July, Markets Shift Toward Balance — The Canadian Real Estate Association (CREA)

Event summary

Canadian home sales rose 0.5% month-over-month in July 2026, marking the fourth consecutive monthly gain.
New listings declined 1.6% month-over-month, the third consecutive drop.
The MLS® Home Price Index (HPI) edged up 0.1% month-over-month but was down 3.3% year-over-year.
The national sales-to-new listings ratio tightened to 51.3%, converging on the long-term average of 54.7%.
Months of inventory stood at 4.7 nationally, slightly below the long-term average of 5 months.

The big picture

Canada’s housing market is gradually moving toward balance after a period of volatility, with regional variations playing a key role. The shift from extreme buyers’ or sellers’ markets to more balanced conditions could stabilize prices and encourage more transactions. This trend, if sustained, may signal a normalization of the market after years of rapid fluctuations.

What we're watching

Market Balance: Whether the shift toward balanced market conditions will continue across more regions, particularly in B.C.’s Lower Mainland and Ontario’s Greater Golden Horseshoe.
Price Stability: The pace at which the year-over-year decline in the MLS® HPI narrows, signaling potential stabilization in home prices.
Supply Dynamics: How the continued decline in new listings will impact inventory levels and market competitiveness in the coming months.