The number of home sales across Canada increased for a fourth straight month in July, new data from the Canadian Real Estate Association (CREA) shows. Home sales have picked up over the past few months, with signs of better economic conditions emerging. While several risks could weigh on the improving momentum, Canada’s real estate market looks to be more stable after struggling over much of 2025 and into the early stages of 2026.

• Existing home sales rose by 0.5% in July over the previous month, the fourth straight monthly gain, though actual sales were still down 5.3% from a year earlier.
• Prices held steady in July. The benchmark home price edged up by 0.1% in July, its first increase since November 2024. However, it remains down 3.3% year-over-year. The benchmark home price was $658,000 at the end of July.
• The data shows that the market may be drifting back towards balance with new listings falling by 1.6%, its third straight decline. This tightened the sales-to-new-listings ratio to 51.3%, which is close to the long-term average.
• A separate report from the Canada Mortgage and Housing Corporation (CMHC) said that housing starts fell by 5.0% in July to 229,074 units, which was its lowest level since March 2025.
• CMHC expects the slowdown to continue, noting fewer new projects are starting even as a large number of homes under construction are completed.  

Together, the reports point to a housing market that’s stabilizing on the resale side while new construction pulls back. CREA noted that the housing market appears to be balancing. A balanced market could ease pressure on buyers, who may not have to make quick decisions and/or face competing offers on a home. A strong and stable housing market is a positive for Canada’s economy and helps lift consumer confidence.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.