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The national numbers point to greater stability, while regional and property-level trends tell a much more complex story.
Canada’s housing market continued to build momentum in July, with sales rising for a fourth consecutive month and the national benchmark price recording its first monthly increase since November 2024.
The latest numbers from the Canadian Real Estate Association suggest the hesitation that shaped the beginning of 2026 may be easing. Buyers are gradually returning, prices are showing stronger signs of stability, and markets across the country are moving closer to a more familiar balance between supply and demand.
National home sales increased 0.5% from June, while new listings declined 1.6%. The sales-to-new listings ratio tightened to 51.3%, and the national average sale price reached $674,819, up 0.2% from July 2025.
July delivered something potentially more useful than a dramatic jump in activity: a fourth consecutive month of measured progress.
“Four months of rising sales gives buyers and sellers a clearer sense of where the market is heading,” notes Karim Kennedy, CEO, Coldwell Banker Canada. “Activity is building at a manageable pace, prices are beginning to stabilize, and people have more information to work with. That consistency can be just as important to consumer confidence as a large increase in sales.”
The Market Is Moving Forward Without Racing Ahead
The national sales-to-new listings ratio increased to 51.3%, moving closer to its long-term average of 54.7%. CREA generally considers readings between 45% and 65% consistent with balanced conditions.
There were 4.7 months of inventory nationally at the end of July, the lowest level recorded so far in 2026 and slightly below the long-term average of five months. The 205,388 residential properties listed for sale were only 1.5% above the long-term average for July.
The recovery is still developing. Actual sales were 5.3% below July 2025, even after four consecutive monthly gains. Month-over-month growth shows that activity is moving forward, while the annual comparison shows there is still room to recover.
The decline in new listings also matters. New supply fell for a third consecutive month, meaning the market is tightening as buyers return and fewer sellers list.
If that pattern continues into the fall, buyers could encounter more competition before substantial annual price growth appears in the national numbers. Sellers may benefit from fewer competing listings, although buyers remain highly attentive to value, condition and presentation.
Price Stability Reaches an Important Milestone
The National Composite MLS® Home Price Index edged up 0.1% between June and July, marking its first monthly increase since November 2024.
The benchmark remained 3.3% below July 2025, though annual declines have been shrinking since January. July’s reading was the smallest year-over-year decrease since October 2025.
For consumers, the direction of prices can influence confidence as much as the price itself. A more stable benchmark gives buyers a clearer foundation for evaluating a purchase and helps sellers price according to current conditions.
“The first monthly increase in the benchmark price is a small number with a bigger psychological impact,” shares Kennedy. “Buyers still want value, and they are paying close attention to affordability. Greater stability helps them feel more confident that they understand the market they are entering.”
The benchmark price also provides a clearer view of underlying trends than the national average, which can shift depending on the mix of properties sold during a particular month.
Canada’s ‘Balanced’ Market Includes Very Different Realities
The national market is moving closer to balance, though few individual markets look exactly like the Canadian average.
In Metro Vancouver, active listings were 26.8% above the 10-year seasonal average, while sales were 18.6% below the average. The region’s composite benchmark price declined 6.2% year over year to $1,088,800. Buyers continue to have choice, although an 11.5% drop in new listings suggests supply is beginning to contract. Greater Vancouver REALTORS®
Ontario also continues to offer more supply than usual. Active listings were 40.2% above the province’s 10-year average, and the benchmark price was 3.9% lower than last July. That inventory is retreating, with new listings down 10.8% and active supply down 5.1% year over year. Ontario Real Estate Association
The shift was particularly visible in the Greater Toronto Area, where seasonally adjusted sales increased for a fifth consecutive month while new listings fell 17.8%. Prices remain below last year’s levels, giving many buyers better value, while declining supply could gradually reduce their negotiating room.
Saskatchewan sits at the other end of the spectrum. The province entered August with approximately 2.33 months of effective supply, more than 50% below its long-term average. Sales through the first seven months of the year remained more than 8% above the 10-year average, and the benchmark price was nearly 4% higher than a year ago.
Conditions were even tighter in Saskatoon, which had approximately 1.27 months of effective supply. Saskatchewan REALTORS® Association
Newfoundland and Labrador provided another striking contrast. Active listings reached their lowest July level in more than two decades, sales were 12.3% above the 10-year average, and the benchmark price rose 9.3%.
The province had 4.3 months of inventory. While that appears relatively balanced nationally, it is exceptionally tight compared to Newfoundland and Labrador’s long-term July average of 8.3 months. Newfoundland and Labrador Association of REALTORS®
“Canada may be balanced on paper, while consumers experience the market property by property and neighbourhood by neighbourhood,” explains Kennedy. “A buyer considering a condo in Calgary may have time and negotiating room, while someone looking for a well-priced home in Saskatoon could still face considerable competition. Local context is what makes the national numbers useful.”
One Property Type Can Tell Several Stories
July’s results also show why broad assumptions about a particular type of home can be misleading.
Apartment benchmark prices declined 7.5% in Metro Vancouver, more than 8% in Calgary, 6.9% across Ontario and 7.8% in Nova Scotia.
In Calgary, apartment condominiums had nearly five months of supply, and the benchmark price was 13% below its 2024 peak. More than 17,000 apartment-style units remain under construction, adding further choice to the market. Calgary Real Estate Board
Attached homes are experiencing very different conditions in parts of Atlantic Canada. Townhouse and row-home benchmark prices increased 17.8% in New Brunswick and 15% in Newfoundland and Labrador.
The difference suggests that local construction, affordability, population trends and available inventory are having a greater influence than property type alone. A market can be balanced overall while favouring buyers in one segment and sellers in another.
Interest Rate Stability Is Helping, Though the Outlook Is Not Settled
The Bank of Canada held its policy rate at 2.25% in July. While its latest survey of market participants showed a median expectation that the rate would remain unchanged through 2026, some financial markets and economists have raised the possibility of an increase later this year or in early 2027.
That speculation has been fuelled partly by renewed inflation concerns. Canada’s annual inflation rate reached 3% in July, driven largely by higher gasoline prices. Core inflation remained close to 2%, suggesting underlying price pressures are still relatively contained.
For buyers, the current environment offers a degree of stability, although borrowing costs are not guaranteed to remain unchanged. Understanding how a modest increase could affect monthly payments can help buyers plan with greater confidence.
What Brokers Should Be Thinking About
A more active and locally varied market creates an opportunity for brokerages to help agents strengthen their client conversations.
Consumers want to know how much inventory is available in their neighbourhood, whether that inventory is changing, how comparable properties are performing and what level of competition they should expect.
Agents need current data, training, marketing resources, technology and leadership that help them translate those details into practical advice.
“Four consecutive months of rising sales is a signal for brokerages to start preparing for renewed opportunity,” explains Paul Abbott, National Vice President, Franchise Development, Coldwell Banker Canada. “This is the time to help agents reconnect with buyers who stepped back, start conversations with sellers who have been on the sidelines and strengthen their pipelines heading into the fall. The brokerages that act on these early signals will be best positioned if activity continues to build.”
Brokerages that continued investing in their people during slower periods now have an opportunity to turn that preparation into stronger client relationships and better business outcomes.
The Broader Story
July’s housing numbers continue the measured momentum that began in the spring.
Sales have risen for four consecutive months, inventory is tightening, and the national benchmark price has recorded its first monthly increase since November 2024.
The experience on the ground remains highly local, shaped by inventory, affordability, property type and the number of active buyers in each community. If sales continue to rise and new listings remain limited, the fall market could become more competitive before national prices record substantial annual growth.
For now, Canada’s housing market appears to be finding its footing one region, neighbourhood and property type at a time.
Whether you are considering buying, selling or just watching the market evolve, Coldwell Banker Canada real estate professionals are here to guide you home with confidence, expertise and clarity.
