Canada's home sales rise for fourth straight month, remain below 2025 levels | Daily Hive

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Canada’s housing market showed further signs of stabilizing in July 2026, although sales remained below both last year’s levels and longer-term norms.

Approximately 38,100 homes changed hands through real estate boards across the country during the month, according to a new Central 1 Credit Union analysis of Canadian Real Estate Association’s data for July 2026.

On a seasonally adjusted basis, sales in July 2026 increased by 0.5 per cent from June 2026, marking the fourth consecutive monthly gain. However, they remained 5.1 per cent below July 2025 levels. Total sales during the first seven months of 2026 were also down 5.1 per cent compared with the same period in 2025.

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Monthly sales continue to fall short of the 10-year average of approximately 43,000 transactions. Nonetheless, Central 1 said the recent upward trend points to a gradual recovery from the market weakness experienced earlier in 2026.

Improving affordability, buyers returning after delaying their purchases, and strengthening consumer confidence are likely contributing to the recovery, according to the economic analysis.

The improvement was uneven across the country.

Ontario accounted for much of the national increase, with sales rising by 2.5 per cent from June 2026 after growing by 2.2 per cent during the previous month. Greater Toronto sales climbed by 3.2 per cent, accelerating from a 1.5 per cent increase in June 2026.

Despite the recent gains, Central 1 deemed Ontario as the weakest provincial housing market.

Sales also increased in Quebec by 0.3 per cent, New Brunswick by 3.5 per cent, and Newfoundland and Labrador by 1.9 per cent.

In contrast, British Columbia sales edged down by 0.1 per cent, while Alberta experienced a 1.4 per cent decline following three consecutive months of growth. Calgary recorded a 1.9 per cent month-over-month increase, while Edmonton saw a 1.9 per cent month-over-month decrease.

Conditions varied significantly within B.C.

Greater Vancouver Realtors’ jurisdiction recorded approximately 1,800 sales, representing a 4.5 per cent decline from June 2026 and a 7.4 per cent decrease from July 2025. The jurisdiction’s average selling price reached approximately $1.223 million, up by 0.2 per cent from June 2026 but down 1.8 per cent annually.

The Fraser Valley Real Estate Board, which spans a jurisdictional area that includes major parts of Metro Vancouver, recorded the opposite monthly trend, with sales increasing by 5.7 per cent. However, activity was still 5.8 per cent below last year. Its average selling price rose by one per cent from June 2026 to approximately $967,400 but remained 6.2 per cent lower than in July 2025.

Across B.C., the average selling price increased by 0.5 per cent from June 2026 to approximately $946,600. That was still 1.4 per cent below the level recorded one year earlier.

The number of newly listed homes across Canada declined by 1.6 per cent in July, including a 2.6 per cent reduction in B.C.

With sales rising slightly and fewer properties coming onto the market nationally, the sales-to-new-listings ratio increased from 50.2 per cent in June 2026 to 51.3 per cent in July 2026 — its highest level since December 2025.

Central 1 said the national housing market remained broadly balanced between buyers and sellers.

Canada had approximately 4.7 months of available housing inventory in July. B.C. had 6.8 months, unchanged from June 2026 and the second-highest level among the provinces after Prince Edward Island’s 8.3 months.

Nationally, the average selling price increased by 0.6 per cent from June 2026 to approximately $686,500. It was essentially unchanged from July 2025.

The benchmark price — which adjusts for differences in the types and locations of homes sold — was virtually unchanged from June 2026, but remained 3.2 per cent lower than one year earlier.

Central 1 expects sales to continue growing at a moderate pace, followed by a stronger recovery in 2027. Improving employment conditions, a stronger economy, and easing affordability pressures in the country’s most expensive markets of Metro Vancouver and Greater Toronto are expected to support buyer confidence.

However, the analysis cautioned that excess inventory in the new-home and rental housing markets could restrain activity in major urban centres. Uncertainty surrounding Canada-United States trade policy also remains a risk.

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