Four Months of Growth: Canada’s Housing Market Strengthens

Over the past four consecutive months, Canada has seen a steady rise in home sales. According to the latest data, national home sales increased by 3.8% from June to July. Compared to July of the previous year, actual sales were up by 6.6%, signaling a strong rebound in the housing market. However, the number of newly listed properties remained mostly flat, showing only a marginal increase of 0.1%. Alongside this activity, the national average sale price also inched up slightly, rising by 0.6% on a year-over-year basis.

This uptick in activity comes after a period of economic uncertainty earlier in the year. Concerns over international trade tensions and a cloudy economic outlook had dampened the spring market, which was expected to be robust. As the year progressed and these uncertainties began to fade, the market started to regain momentum. By mid-year, pent-up demand started to release, resulting in significant gains in home sales since March.

The arrival of fall traditionally brings increased real estate activity in Canada, partly due to the end of summer holidays and a seasonal burst of new listings. September often sees a surge in available properties, and if the current trend continues, the following months could bring even stronger sales. The alignment of returning buyers and an influx of listings typically fuels market activity through October and November.

Currently, the market remains balanced, with a sales-to-new listings ratio at 52%, well within the range considered typical for a stable housing environment. However, with inventory levels tight and sales rising, there's a shift happening toward a sellers’ market. If this pattern of sales outpacing new listings continues, the national market could fully enter sellers’ territory by early next year.

In terms of pricing, the picture varies across the country. While some regions like Quebec and the East Coast have experienced consistent price growth, others like the Lower Mainland of British Columbia have seen declines. Markets such as Ontario remain mixed, with some areas witnessing increases and others holding steady. Overall, the national average home price reached $672,784 in July 2025, suggesting that most of the country is moving toward price stability or gradual growth.