Canadian Housing Market Report

*Seasonally Adjusted

Note: Data sourced from the Canadian Real Estate Association (CREA)

July 2026 provided some of the strongest evidence yet that the housing correction is losing momentum.

The seasonally adjusted MLS Home Price Index increased by 0.1% from June 2026 to July 2026. While small, this was only the second monthly increase since January 2025, after also increasing in June 2026. The non-adjusted benchmark home price remained 3.3% below July 2025, but that annual decline has been getting smaller since January 2026 and was the smallest year-over-year decrease since October 2025.

That does not mean Canadian home prices are suddenly rising everywhere. Ontario and British Columbia continue to post some of the largest annual benchmark-price declines, while much of Quebec and Atlantic Canada remain above July 2025 prices. The result is an increasingly divided housing market.

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Terms and conditions apply. Rates are per annum and subject to change without notice. Eligible for CDIC deposit insurance. See WealthONE's website for current rates and applicable balance tiers. Highest rate in Canada for RRSP HISA accounts, as confirmed by WOWA as of July 24 2026

Canada's housing market continued to stabilize in July 2026. National home sales increased for the fourth consecutive month on a seasonally adjusted basis, while the seasonally adjusted benchmark home price posted its second monthly increase since January 2025. At the same time, annual sales remained below July 2025 levels, the non-adjusted benchmark home price continued to decline month-over-month, and price trends varied significantly by province.

The national benchmark home price was $661,800, 3.3% lower than a year ago. The national average home price was $674,819 in July 2026, up 0.2% from a year ago but down 3.1% from June 2026.

National sales increased 0.5% from June 2026 after seasonal adjustment, making July the fourth consecutive month of improving sales. New listings moved in the opposite direction, falling 1.6% from June 2026. This increased Canada's sales-to-new-listings ratio to 51.3%, up from 50.2% in June 2026.

There were 205,388 properties listed for sale across Canada at the end of July 2026, only 0.6% more than a year earlier and about 1.5% above the long-term average for the month of July. Months of inventory were 5.4, tipping into a buyer's market.

Note: Sales are seasonally adjusted

The largest annual increases in average prices were in Prince Edward Island (+5.6%), Saskatchewan (+4.9%), and Quebec (+4.9%).

At the other end of the market, Ontario's average price was approximately 3.0% lower than in July 2025, while British Columbia was down 1.3%.

This represents a substantial narrowing of the gap between Canada's previously hottest and weakest provincial housing markets.

No province set a new record for its average selling price in July 2026. Newfoundland and PEI continued to break their all-time benchmark home price records in July 2026.

That is a noticeable change from June 2026, when several smaller provincial markets were reaching new average or benchmark price records. The slowdown in new records is another indication that price growth is becoming less widespread even in parts of Canada that have remained relatively strong.

Benchmark prices provide a better measure of changes in the value of a typical home than average prices because they are less affected by changes in the types of properties sold.

A notable feature of July is the difference between the national average price and benchmark price. The average price was slightly higher than a year ago, up 0.2% year-over-year, while the benchmark remained 3.3% lower.

This suggests that part of the apparent strength in the national average is coming from the mix and location of homes being sold, rather than a 0.2% increase in the value of a typical Canadian home.

The seasonally adjusted national benchmark home price, meanwhile, increased 0.1% from June 2026. The difference between the raw benchmark-price movement and seasonally adjusted benchmark reinforces why monthly housing data should not be judged from a single measure.

Canada was slightly in buyer's market territory in July 2026, with 5.4 months of inventory, above the 5 month threshold.

CREA considers a national sales-to-new-listings ratio between roughly 40% and 60% to be consistent with a balanced market. July 2026's ratio increased to 51.3%, compared with 50.2% in June 2026.

More importantly, regional markets are gradually converging toward their historical norms.

Ontario had been firmly in buyer's-market territory during the first four months of 2026, but conditions had moved significantly closer to balance by July 2026. Saskatchewan, New Brunswick, and Newfoundland and Labrador remained among the tightest provincial markets.

P.E.I. and B.C. have some of the highest inventory relative to sales, while Saskatchewan and Alberta remain considerably tighter.

Note: Canada's figure is seasonally adjusted. Provincial figures are calculated using active listings divided by sales for the month. Quebec is calculated using average sales over the previous 12 months.

July does not yet represent a housing-market rebound, but several indicators suggest that the steepest part of the national correction may be behind us.

Sales have now increased for four consecutive months. New listings have declined for three consecutive months. Months of inventory have fallen to their lowest level of 2026. The seasonally adjusted benchmark home price finally turned positive month-over-month in June 2026 and July 2026, the first time it has grown month-over-month since January 2025. And the annual benchmark home price decline has narrowed steadily since January 2026.

However, actual July sales were still 5.3% below July 2025, and the national benchmark remained 3.3% lower than a year earlier. Mortgage rates also remain higher than they were before 2022.

British Columbia's housing market remained Canada's most expensive provincial housing market in July 2026, with an average sale price of $929,619.

The average price fell 1.3% year-over-year, while B.C.'s benchmark price fell 4.9% year-over-year to $881,500, the largest provincial benchmark decline in Canada for July 2026.

There were 6,561 residential sales during July 2026, down 6.7% from a year earlier. Sales were 18.8% below the province's 10-year July average.

Despite weak headline numbers, the provincial picture is becoming more nuanced. BCREA reported that seasonally adjusted sales improved from the previous month in most regions of the province, with much of the remaining weakness concentrated in the Lower Mainland.

B.C. had approximately 6.9 months of inventory, among the highest levels in Canada.

The combination of below-average sales, elevated inventory, and falling benchmark prices means buyers continue to have considerably more negotiating power than they did several years ago, particularly in the Lower Mainland.

Quebec remained one of Canada's stronger large provincial markets.

The average home price was $566,898, up 4.9% from July 2025. The benchmark price was $546,600, up 3.2%.

There were 7,407 sales and 11,303 new listings during July 2026, giving Quebec a sales-to-new-listings ratio of approximately 65.5%.

This puts the province near the upper end of balanced-market territory and helps explain why Quebec prices continue to outperform Ontario and B.C.

The Montreal average home price was $693,686 in July 2026, an all-time high for the second consecutive month, and up 5.3% year-over-year.

Quebec City

Quebec City remains particularly strong, although some of the extreme seller pressure seen earlier in 2026 is easing.

There were 709 sales during July, 4.3% fewer than a year ago. Active listings increased 24% year-over-year, yet remained approximately half of typical historical levels.

One of the clearest signs of cooling is bidding activity. Approximately 20% of Quebec City single-family homes sold for at least 5% above asking price in July 2026, compared with roughly half of sales in March 2026.

That suggests Quebec City remains a seller-favouring market, but buyers are facing less extreme competition than during the spring.

Alberta

Alberta's average home price was $519,033, up 3.2% year-over-year.

Its benchmark price was $513,800, however, 1.1% below July 2025. The divergence between average and benchmark pricing suggests that Alberta's market is more mixed than its headline average-price increase implies.

There were 6,933 sales, 11,604 new listings, and approximately 22,259 active listings. Alberta's sales-to-new-listings ratio was 59.7%, with approximately 3.2 months of inventory.

CREA noted in its July forecast that Alberta prices began increasing again during the second quarter of 2026 after earlier weakness.

Alberta therefore appears to be shifting from its earlier correction toward a more balanced period, although conditions remain considerably less competitive than during the province's rapid 2022-2024 expansion.

Saskatchewan

Saskatchewan continues to be one of Canada's tightest housing markets.

The average price was $368,945, up 4.9% year-over-year, while the benchmark price increased 3.6% to $383,500.

There were 1,653 sales in July 2026, approximately 10% fewer than the record-setting July 2025, but activity remained above historical levels. Year-to-date sales were 8% above the 10-year average.

Saskatchewan is an example of why national housing-market conditions can be misleading: while buyers in parts of Ontario or B.C. have abundant choice, many Saskatchewan buyers are still competing in a market with low available supply.

Manitoba

Manitoba's average home price was $399,003, up 2.2% year-over-year, while its benchmark price increased approximately 3.2% year-over-year to $392,900.

There were 1,617 sales in July 2026, down 7.2% from a year ago, while 2,222 new listings came to market.

Winnipeg also continued to set price milestones for the month of July 2026. The average detached-home price in the Winnipeg Regional Real Estate Board area reached $454,264, while the average condominium price reached $290,522, both records for the month of July.

Nova Scotia

Nova Scotia's average price was $465,412, up 1.5% year-over-year. Its benchmark price was essentially unchanged at $429,100.

There were 1,075 sales during July 2026 and approximately 5.3 months of inventory.

Nova Scotia has moved closer to a balanced market after several years of exceptionally tight supply and rapid price growth.

In Halifax's housing market, the average home price fell 3.6% month-over-month to $577,503 and was approximately 0.5% lower year-over-year. Sales remained approximately 3.6% below last year.

Prince Edward Island

P.E.I. had one of Canada's most unusual housing markets in July 2026.

Its average price increased 5.6% year-over-year to $402,099, while its benchmark reached a record $388,400.

At the same time, sales fell 19.2% year-over-year to just 181 transactions, the slowest July since 2021. Active inventory reached 1,373 homes, the highest July level in more than five years, leaving approximately 7.6 months of inventory.

P.E.I. therefore combines record-level benchmark prices with buyer-friendly inventory and falling sales.

This apparent contradiction highlights the lag that can occur between changes in sales activity and changes in reported prices, particularly in a small market where relatively few transactions can significantly affect monthly averages.

New Brunswick

New Brunswick's average home price was $354,688 in July 2026, up 3.3% year-over-year.

Its benchmark price increased much faster, rising 6.7% year-over-year to $344,000.

There were 970 sales, 1,484 new listings, and 4,124 active listings, equivalent to approximately 4.3 months of inventory.

Average prices during July 2026 were:

• Fredericton: $372,263
• Moncton: $383,611
• Saint John: $385,104

Newfoundland and Labrador

Newfoundland and Labrador remains one of Canada's strongest provincial housing markets.

Its average price increased 3.0% year-over-year to $366,413, while its benchmark price reached a new high of $359,300, up 9.3%.

There were 658 sales in July, an 8.2% annual increase. July 2026 sales were reported as the third-highest for the month of July on record, while active listings were at their lowest July level in more than two decades.

The St. John's benchmark price reached approximately $427,800, up more than 10% from a year earlier.

Unlike Ontario and B.C., Newfoundland's challenge remains a shortage of supply rather than a shortage of buyers.

Canada's Housing Markets Are Converging

One of the most important developments in 2026 has been the gradual convergence of provincial market conditions.

Ontario and B.C. entered the year with elevated inventory and weak demand. Saskatchewan, New Brunswick, and Newfoundland entered with exceptionally tight supply.

By July, Ontario had moved closer to balance while several of the strongest markets had seen additional listings come to market.

Canada is therefore becoming somewhat less polarized, even though major regional differences remain.

Ontario and B.C. Are Still Weighing on the National Benchmark

Canada's two most expensive large provinces account for a substantial share of national real estate value.

With benchmark prices down 3.9% in Ontario and 4.9% in B.C., weakness in those markets continues to pull down the national benchmark home price even as prices rise in Quebec, Saskatchewan, Manitoba, New Brunswick, P.E.I., and Newfoundland.

This helps explain how Canada can simultaneously have:

• a national average price slightly above July 2025;
• a national benchmark 3.3% below July 2025; and
• numerous provinces recording annual price increases.

There is no single "Canadian housing market" when regional trends are moving in opposite directions.

Falling Listings Are Helping Restore Balance

The recent improvement in market conditions has not been driven by a surge in buying alone.

New listings fell 1.6% nationally in July 2026 and have declined for three consecutive months. As a result, the sales-to-new-listings ratio has increased and months of inventory has fallen even though overall sales remain below last year's level.

This is particularly visible in Ontario, where new listings fell much faster year-over-year than sales.

If sellers continue to pull back while demand gradually improves, the national market could tighten without requiring a return to pandemic-era sales volumes.

July's Provincial Monthly Sales Declines Are Partly Seasonal

Many provinces recorded double-digit declines in unadjusted sales from June 2026 to July 2026.

These figures should not be interpreted as evidence that demand suddenly collapsed in July 2026.

Spring is normally one of the busiest periods for Canadian real estate, and provincial data is not seasonally adjusted. The national seasonally adjusted series provides a better measure of the underlying short-term direction and increased 0.5% monthly in July 2026.

This distinction is particularly important when interpreting July 2026's provincial numbers.

The Resale Market Is Stabilizing While New Construction Slows

Canada's resale market is showing signs of stabilization just as the residential construction pipeline begins losing momentum, according to newly released data from the Canada Mortgage and Housing Corporation (CMHC).

The six-month trend in housing starts declined 0.5% in July 2026 to 247,377 annualized units. The seasonally adjusted annual rate of total housing starts fell 5% from June 2026 to approximately 229,074 units. Actual starts in centres with populations of at least 10,000 were 19% below July 2025.

Vancouver housing starts fell 42% year-over-year and Toronto starts declined 10%, while Montreal starts increased 3%.

At the same time, a large volume of housing remains in the construction pipeline. There were approximately 373,091 units under construction in larger urban centres, while monthly completions increased 8.1%.

That creates two different supply stories: completions could continue adding homes in the near term, while weaker starts today risk slowing the flow of new supply later.

What Does July 2026 Mean for Buyers?

For buyers, conditions depend heavily on location.

Buyers in B.C., Ontario, and P.E.I. generally have more selection and negotiating leverage than buyers had during the peak housing market. Elevated inventory and softer benchmark prices mean there is less pressure to make immediate decisions in many communities.

Buyers in Saskatchewan and Newfoundland and Labrador face a very different market, where inventory remains tight and prices continue to rise.

Nationally, July 2026's data suggests that buyers who were waiting for the housing market to continue weakening indefinitely may no longer be able to rely on falling prices across every market. However, there is also little evidence of a return to rapid national price growth.

What Does July 2026 Mean for Sellers?

Sellers are entering a more balanced market than they experienced earlier in 2026.

In Ontario and B.C., realistic pricing remains important because buyers have alternatives and benchmark prices remain below last year.

Sellers in Saskatchewan, Newfoundland and Labrador, New Brunswick, and parts of Quebec have considerably stronger market conditions because available supply remains relatively tight.

The biggest national change is that conditions are no longer becoming progressively more buyer-friendly. Inventory is tightening, sales are gradually recovering, and the national benchmark home price has finally stopped declining on a seasonally adjusted monthly basis.

📊 2026 Canada Housing Market Forecast

Forecasts for the remainder of 2026 continue to point toward a subdued year rather than a major housing rebound.

CREA's July 2026 forecast expects 463,336 residential sales in 2026, a 1.4% decline from 2025. The national average home price is forecast to increase 1.1% to approximately $686,710.

CMHC is somewhat more cautious. Its Summer 2026 Housing Market Outlook projects approximately 457,200 sales, an average price of approximately $675,200, and 241,400 housing starts during 2026. CMHC expects slow economic growth, weaker population growth, elevated borrowing costs, and economic uncertainty to restrain housing demand before conditions improve in 2027 and 2028.

1. 🏦 Constraint from Stable Interest Rates

Market expectation of stable BoC rates until 2027 acts as a brake on sales activity.

• No "Unleashing" of Demand: The market will not benefit from the "powerful boost" of further rate cuts that some forecast.

• Mortgage Renewal Headwind: A large portion of all outstanding Canadian mortgages are expected to renew in 2026. Since many of these renewals will be at higher rates than their initial contracts (especially five-year fixed mortgages), homeowners will face payment increases for those renewing in 2026. This rising cost of ownership will force/encourage some sellers to list.

2. ⚔️ Damage from Trade Conflict

The trade conflict is a net negative that hits both the supply and demand sides of the market simultaneously.

• Supply Crisis Deepens: Retaliatory tariffs on key imports (e.g., steel, aluminum, glass, and major appliances) from the U.S. will drive up the price of building materials. This added expense will cause developers to delay or scrap new projects, reducing housing starts and prolonging the supply crisis.

• Confidence Sinks: The primary risk is the "overall economic slowdown" caused by trade uncertainty, which translates directly into lower consumer confidence and a hesitation to make a large purchase, further muting sales activity.

3. 🌍 Stabilization from Established Immigrants

The sustained underlying demand from recent immigrants who are now credit-ready will be the market's main stabilizing force.

• Demand Maturation: Immigrants from the last few years are now meeting the necessary two years of Canadian residency and job stability required for favourable mortgage financing and are transitioning from the rental market to the ownership market.

• Price Floor: This structural demand will be concentrated in major urban markets (Toronto, Vancouver, Montreal, Calgary), acting as a floor under prices and likely preventing the very steep annual declines that some forecast for Ontario and BC from being realized. This sustained demand will offset economic softness caused by trade anxiety.