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In July 2025, Canadian home sales climbed by 3.8% month-over-month, marking the fourth consecutive monthly increase and resulting in a cumulative gain of 11.2% since March. This uptick was led by the Greater Toronto Area (GTA), where sales rebounded 35.5% since March. Across Canada, actual (non-seasonally adjusted) activity was 6.6% above July 2024 levels. Meanwhile, new listings remained essentially flat (+0.1% m/m), causing the sales-to-new-listings ratio to rise to 52%—approaching CREA’s long-term balanced-market norm of 54.9%.

The MLS® Home Price Index (HPI), which tracks the benchmark price ignoring composition shifts, held steady month-over-month and was down 3.4% compared to July 2024. However, the national average sale price—the simple average across all transactions—inched up by 0.6% year-over-year, reaching approximately $672,784. omplementing CREA’s view, TD Economics highlighted that average home prices rose 1.3% month-on-month, buoyed by higher sales in Ontario, B.C., and Quebec, while the benchmark HPI remained flat—suggesting more expensive homes comprised a larger share of sales. CREA noted inventory tightened further: by the end of July, Canada had 4.4 months of housing supply, down from the long-term average of 5 months—a move into slightly seller-leaning territory.

CREA’s Chair, Valérie Paquin, emphasized that the July surge signals the long-anticipated post-inflation housing rebound may be fully underway, particularly as summer momentum builds toward the typical fall surge in listings .TD Economics similarly observed that pent-up demand, especially in major markets with ample listings like Toronto and Vancouver, has fueled a delayed recovery now taking shape. CREA also forecasted a softer performance in 2025 overall: total home sales are expected to fall roughly 3% from 2024, with a modest average price decline of 1.7% to $677,368, though a stronger rebound—6.3% in sales and a 3% price increase—is anticipated in 2026.

Read the full article on: CBC