Canada’s housing market is showing signs of revival. In July 2025, national home sales rose by 3.8% compared to June, marking the fourth straight month of gains. This strengthening trend reflects growing buyer confidence and hints at a stabilising real estate landscape.
A Closer Look at the Numbers
- Monthly growth: Home sales spiked 3.8% month-over-month.
- Year-over-year climb: Sales were 6.6% higher than in July 2024.
- Since March, Transactions have cumulatively risen 11.2%.
Regional Highlights: Greater Toronto Leads the Charge
- In the Greater Toronto Area (GTA), July sales surged 13% month-over-month—the strongest increase in nine months.
- The GTA’s activity now stands at its highest July level since 2021, driven by improved affordability and lower borrowing costs.
Market Dynamics: Supply, Prices & Balance
- Listings: New supply was virtually unchanged—up just 0.1%, contributing to a rising sales-to-new-listings ratio of 52%.
- Inventory levels: At 4.4 months nationally, still below the long-term average of five months, signalling a balanced to tightening market.
- Prices:
- The MLS® Home Price Index (HPI) held steady month-over-month, down 3.4% year-over-year.
- The average home sale price climbed 0.6% year-over-year to $672,784 in July.
What’s Fueling the Upswing?
CREA’s Senior Economist, Shaun Cathcart, remarked:
“With sales posting a fourth consecutive increase in July, and almost 4% at that, the long-anticipated post-inflation crisis pickup in housing seems to have finally arrived.”
Key factors fuelling this momentum include:
- Buyer confidence is returning as borrowing costs stabilise.
- Easing economic uncertainty, encouraging hesitant buyers to re-enter the market.
- Stronger demand in urban hubs like the GTA, where affordability has improved slightly.
Looking Ahead
- Fall market momentum: Traditionally, September sees a surge in new listings; the market’s response will be critical.
- Policy watch: Any adjustments in interest rates or government measures could either bolster or slow this recovery.
- Regional variations: While the GTA is leading, other regions such as British Columbia remain less active—local dynamics will continue to shape outcomes.
Canada’s housing scene is showing real signs of revival. With four straight months of sales growth, stabilised prices, and relatively tight inventory, the market appears balanced and recovering.
For buyers, sellers, and industry observers alike, the coming months will be telling—will this momentum persist, or will rising demand push the market back toward sellers?
