Home sales in Canada went up again in July, making it the fourth month in a row with more people buying homes. Sales rose by 3.8% from June, and compared to July last year, they were up 6.6%. This increase shows that more buyers are feeling confident and ready to get back into the market after a tough period caused by inflation and global trade issues.
Even though more homes are being sold, the cost of buying one is still a big problem for many people. The average home price dropped slightly to $979,000 in July, which is 5.5% lower than it was last year. This small drop might help a few buyers, but in cities like Toronto, prices are still high. While buyers now have a bit more power to negotiate, homes are still not very affordable for the average person.
Toronto has been leading the country in home sales. Since March, the number of homes sold there has jumped by more than 35%. This is a big turnaround after years of price increases and economic struggles. But not every part of the market is doing well. Condos, especially smaller ones usually bought by investors, are still having a hard time selling. Fewer foreign workers needing rental units might be part of the reason.
Across Canada, there were over 42,000 homes sold in July. The market is getting tighter because the number of homes for sale hasn't changed much, while sales keep rising. The average home price across the country was $672,784 in July — a small increase of 0.6% from last year. If this pattern continues and more homes aren’t listed for sale, prices could start rising faster again.
Experts think total home sales for 2025 might still end up lower than last year, but things could start to improve more in 2026. Affordability is still a challenge, especially with high interest rates. While the central bank isn’t expected to lower rates again soon, the government might bring in new policies in the fall that could affect the housing market. Still, any improvements in affordability will likely be slow and won’t return to how things were before the pandemic.