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.
Eight years left to go in the housing downcycle!
Useless numbers and speculation. Most markets in Canada are unaffordable for most of the Canadian population. There are pockets in the country where it is still affordable based on the wages and cost of living in the areas. It’s not a secret why Alberta is attracting so many people where the average take-home wages are 25% higher than the average in the country and where the real estate market got left behind for 10 years because of low oil prices amongst other things. Population growth makes prices go up and I’m witnessing it every day in the central Alberta real estate market. While the rest of Canada is in recession this area is experiencing a building boom such as never been seen before and population growth in record numbers. It is even getting so bad with all the immigrants coming here that the premiere is considering putting in provincial immigration policies for immigrants where we have to approve them in our province.
According to Fergie, without any proof of course, you’re citing benchmark “Frankenumbers” and the real drops are immense. I’m not seeing it. As usual the FB posts are of overpriced outliers and never the actual sale prices which are within a few percent of last years assessed.
Not sure why any farms, houses and condos are still selling across Canada. Smart buyers are dumping their Canadian real estate and going all in on the deals across the USA.
See zillow, redfin and other sites for the cheap and superb deals across the USA.
Foreign buyers are coming back the X-Vancouver mayor is now the housing Minister that’s his agenda. Developers are lobbying him and they are his best friends and he wants to maintain prices because he owns 10 or 11 condos in downtown Vancouver. The reduction in the amount of immigrants coming in is going to have a negative effect on prices so they have to make up for it and right away. Billions in foreign laundered money from foreign investors is headed our way again and most of it’s going into the housing industry residential to compete with local buyers.
I’m trying to find out why real estate prices are dropping. Is it because prices are too high, the job market is softening, or has CISIS finally caught up to foreign and domestic money launderers?
A realtor at an open house over the weekend told me this is the bottom. Just incase anyone was wondering 🤔
How were we able to buy so many so fast?
We waited for everybody else to go broke
Then scooped them for next to nothing
Vancouver folks have lost their buyers to the cheap deals in the USA for new houses at less than 400K. Enjoy being poor bagholders for the next 20 years.
https://globalnews.ca/news/11186814/condos-empty-metro-vancouver-housing-crisis/