According to the Canadian Real Estate Association (CREA), Canadian home sales rose 3.8% month-over-month in July 2025, marking a fourth consecutive monthly increase and extending a post-inflation crisis rebound that has now lifted transactions 11.2% since March.
“With sales posting a fourth consecutive increase in July, and almost 4% at that, the long-anticipated post-inflation housing pickup appears to be underway,” said Shaun Cathcart, CREA’s senior economist. He added that the market’s response to the usual influx of new listings in early September will be a key indicator of sustained momentum.
New listings were largely flat in July, edging up just 0.1% from June. The relative surge in sales pushed the national sales-to-new listings ratio to 52%, up from 50.1% in June and 47.4% in May. CREA notes that the long-term average for this ratio is 54.9%, with readings between roughly 45% and 65% considered consistent with a balanced market.
At the end of July, 202,500 properties were listed across Canadian MLS Systems, a 10.1% increase from the same month a year earlier, aligning with historical seasonal averages.
Inventory levels tightened further in July, with 4.4 months of supply nationwide, below the long-term average of five months. CREA defines a seller’s market as below 3.6 months of inventory and a buyer’s market as above 6.4 months.
On pricing, the National Composite MLS Home Price Index (HPI) was unchanged from June, reflecting stable benchmark prices after first-quarter declines. On a year-over-year basis, the non-seasonally adjusted HPI fell 3.4%, a smaller decline than in June. CREA anticipates year-over-year price drops to continue narrowing in the coming months.
The non-seasonally adjusted national average home price reached $672,784 in July, up 0.6% from July 2024, signaling modest recovery in dollar terms even as broader affordability pressures persist.