Canadian Housing Market Becoming More Balanced: CREA

National home sales edged up another 0.5 per cent month-over-month in July, marking a fourth consecutive monthly gain.

At the same time, new listings declined by a further 1.6 per cent over the same period, representing the third monthly drop in a row.

Combined, these shifts pushed the national sales-to-new listings ratio to 51.3 per cent in July, bringing it closer to the long-term average of 54.7 per cent.

Over the last few months, markets across the country have generally moved back toward balance. A majority of sellers’ markets on the Prairies, in Quebec and on the East Coast have been steadily cooling over the past year. More recently, markets in British Columbia’s Lower Mainland and Ontario’s Greater Golden Horseshoe, which were formerly in buyers’ favour, have largely shifted back into balanced territory.

“The ongoing shift toward a more normal balance between supply and demand in so many markets across Canada … can be expected to continue to bring buyers off the sidelines going forward,” says Garry Bhaura, chair of the Canadian Real Estate Association.

Months of inventory on a national basis at the end of July was 4.7 months — the lowest level so far in 2026, and slightly below the long-term average for the measure of five months.

The national composite MLS Home Price Index (HPI) edged up 0.1 per cent from June, marking the first monthly increase since November 2024.

Despite the monthly gain, the non-seasonally adjusted national composite MLS HPI was down 3.3 per cent year-over-year. However, the annual decline has been narrowing from January onward, with July marking the smallest decrease since October 2025.

The non-seasonally adjusted national average home price was $674,819 in July, up 0.2 per cent from the same month last year.