Canadian real estate markets showed a minor sign of improvement—but it may just be noise. Canadian Real Estate Association (CREA) data shows composite home sales improved in July, hitting a 4-year high for the month. Despite rising sales, a wall of inventory helped to push prices down sharply last month. Home prices fell to the lowest level in over 4 years, as monthly drops accelerated.
Canadian Real Estate Prices Fall To 4-Year Low After The Sharpest Monthly Drop Since October 2024
CREA composite benchmark price: The unadjusted price of a typical home across Canada.
Source: CREA; Better Dwelling.
Canadian real estate price declines are getting larger. The price of a typical home fell 0.7% (-$4,700) to $693,300 in July. It was the largest monthly drop since October 2024, showing losses aren’t easing but have begun to accelerate.
The benchmark was 3.4% (-$24,500) lower than last year, which is a minor improvement from June’s 12-month change. However, this improvement is largely due to a base effect from last year’s comparison period. When looking at the fixed point of the record high in March 2022, the benchmark price has fallen 18.6% (-$158,300). Now the furthest from the peak on record, home prices are at their lowest since April 2021—rolling back more than 4 years.
Canadian Real Estate Sales Hit A 4-Year High, Remains Below 2019
Canadian existing home sales through the MLS for July.
Source: CREA; Better Dwelling.
Canadian real estate sales were a minor bright spot. Unadjusted sales reached 47,045 homes in July, up 6.6% from last year. The volume was the highest for July since 2021, but still 3.8% below 2019. Home sales are improving after months of stagnation, but they’re not quite at a normal volume—even before accounting for the sharp population growth.
Canadian Real Estate Listings Hit A New High For July
Canadian residential real estate newly listed for sale on the MLS in July.
Source: CREA; Better Dwelling.
Despite the improvement in sales, sellers appear to be much more interested in this market. There were 88,616 new listings in July, up 5.9% from last year. Despite sales outpacing its growth rate, new listings hit a record volume after years of steadily inching higher.
All said, the market remains well balanced at the national level. The sales to new listings ratio (SNLR) came in at 51.9% in July, up a minor 0.4 points from last year. Despite the insignificant change, the ratio remains right near the 50% mark, which is considered perfectly balanced.
Canadian real estate markets are facing a heavy dose of reality as sales rise and prices fall. Rising sales with falling prices typically signals seller concessions—an adjustment to excess inventory and more competition. But with only a few months of improved sales, it’s unclear whether this marks a real recovery or just a brief release of pent-up demand from buyers less impacted by affordability. That distinction won’t be clear for a few more months.