Canada’s two largest real estate markets reported sales figures for July in recent days. And the data suggests Canada’s real estate market might be turning the corner after months of sluggish activity. Sales were up in Toronto, while the year-over-year decline in home sales in Vancouver slowed. Economic uncertainty in response to trade tensions has weighed on consumer confidence, hindering activity in the real estate market for much of this year. Now, lower prices and mortgage rates might be helping to boost demand.

• The Toronto Regional Real Estate Board (TRREB) says that home sales increased by 13% in July over June. This marked the largest monthly increase since October 2024. On a year-over-year basis, sales increased by 10.9%. The average selling price declined by 5.5% year-over-year.
• Demand was boosted by falling home prices and lower mortgage rates, according to TRREB. Homes have become more affordable, allowing more buyers into the market. However, TRREB cautions that even lower mortgage rates might be needed to help drive a full recovery.
• Heading west, Greater Vancouver Realtors says home sales declined by 2.0% year-over-year in July, a slower pace of decline than the previous month. Vancouver’s board believes the slowdown might suggest that activity is recovering.
• Real estate market activity slowed earlier this year as trade tensions created economic, jobs and financial uncertainty. The economy has proven to be resilient amid a relatively strong labour market and lower inflation, which has kept the Bank of Canada from lowering interest rates at its last three meetings, helping to keep mortgage rates at current levels.

Signs are pointing to a pick-up in Canada’s real estate market as lower mortgage rates and falling prices have improved affordability. While it is still far from a full recovery, small steps in the recovery have been taken and could get a boost if Canada reaches a trade deal with the US and consumer confidence levels stabilize.

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