The Canadian housing market is starting to find some balance as steady home sales and a third consecutive drop in new listings push regional markets across the country out of buyer or seller territory and into neutral ground.
Data released by the Canadian Real Estate Association shows national home sales edged up 0.5% on a month-over-month basis in July, registering a fourth straight monthly gain.
At the same time, the number of newly listed properties fell 1.6% from June. The combination of modest sales growth and tightening inventory pushed the national sales-to-new listings ratio to 51.3%, moving closer to the historical average of 54.7%.
In real estate terms, ratios between 45% and 65% generally signify balanced conditions between buyers and sellers.
“At the national level, July’s housing data was a carbon copy of the June numbers, with home sales edging up a little further, listings down, and prices remaining stable,” Shaun Cathcart, senior economist at CREA, said in a statement.
Cathcart noted that regional markets across Canada are broadly returning to balanced territory. Sellers’ markets in Quebec, the Prairies and the East Coast have cooled over the past year, while previously buyer-friendly conditions in British Columbia’s Lower Mainland and Ontario’s Greater Golden Horseshoe have shifted back into balanced territory.
The buyers gain patience while tight supply benefits selective sellers
Prospective homebuyers stand out as primary beneficiaries of the shifting environment. With overall national inventory holding at 4.7 months and price growth largely flat, buyers face reduced exposure to high-pressure bidding wars and rapid value drops.
“The ongoing shift towards a more normal balance between supply and demand in so many markets across Canada is good news for buyers, whether that means not having to worry about your new home falling in value, or not feeling pressured to make a decision due to competing offers,” Garry Bhaura, chair of CREA, said in a statement.
Sellers in regions with tight supply also continue to hold an advantage. According to the association, Saskatchewan, New Brunswick and Newfoundland and Labrador remain borderline sellers’ markets, giving property owners in those provinces stronger negotiating leverage compared to the rest of the country.
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Rapid gains fade as inventory remains constrained
Sellers accustomed to rapid price acceleration and swift transactions may find the current environment less advantageous. The national composite MLS Home Price Index edged up just 0.1% month-over-month and remained down 3.3% compared to July 2025.
Additionally, actual non-seasonally adjusted monthly sales activity fell 5.3% short of July 2025 levels, indicating that overall transaction volumes remain historically subdued.
Prospective buyers waiting for a vast selection of discounted inventory are also facing constraints. Total active supply sat at 205,388 properties at the end of July, up just 0.6% from a year earlier and 1.5% above long-term averages. With new listings falling for three consecutive months, inventory accumulation has stalled.
The actual non-seasonally adjusted national average home price stood at $674,819 in July, up 0.2% from the same period last year.
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
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