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In July 2025, Canadian home sales experienced a notable rebound, with transactions increasing by 3.8% compared to June and 6.6% year-over-year, according to the Canadian Real Estate Association (CREA). This marks the fourth consecutive monthly rise, signaling a recovery from earlier market slowdowns. The surge was particularly pronounced in the Greater Toronto Area, where sales have risen by 35.5% since March. CREA's senior economist, Shaun Cathcart, attributes this uptick to pent-up demand finally entering the market, following a period of economic uncertainty and inflation concerns.

Despite the increase in sales, the national Home Price Index (HPI) remained unchanged from June and showed a 3.4% decrease compared to July 2024. However, the actual national average sale price edged up by 0.6% year-over-year to $672,784. The number of newly listed properties was virtually unchanged, rising by just 0.1% month-over-month, indicating a balanced supply-demand dynamic. The national sales-to-new listings ratio increased to 52%, approaching the long-term average of 54.9%, suggesting a shift towards a more balanced market.

Regional markets also exhibited strong performances. In London and St. Thomas, home sales surged by 27.4% year-over-year in July. BMO senior economist Robert Kavcic noted that the national housing market appears balanced and stable, with regional variations reflecting ongoing price corrections. He suggested that elevated inventory levels and modest price declines are encouraging buyers to re-enter the market. Looking ahead, analysts anticipate that the influx of new listings typically seen in early September may further influence market dynamics.

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