Sales gained in July with prices edging up for the first time since late 2024, CREA data reveals
Canadian residential real estate sales edged up 0.5% in July 2026, marking the fourth consecutive monthly gain, according to new data from the Canadian Real Estate Association (CREA).
While momentum is building, the market has yet to fully recover from last year's levels, with unadjusted activity still running 5.3% below July 2025.
The steady uptick is drawing attention from financial advisors and wealth managers who track housing as a bellwether for broader consumer confidence and household balance sheets.
Inventory tightens as new listings fall
Supply continues to pull back. Newly listed properties declined 1.6% month-over-month in July, the third consecutive drop, leaving 205,388 homes available nationally at month-end.
Months of inventory fell to 4.7, the lowest reading of 2026 and below the long-term average of five months, signalling that the balance of power is gradually shifting.
The sales-to-new listings ratio climbed to 51.3%, approaching the long-term benchmark of 54.7%.
"Markets across the country are generally moving back towards balance," said Shaun Cathcart, Senior Economist at CREA.
The regional picture is nuanced. The Prairies, Quebec, and Atlantic Canada are cooling from sellers' market conditions, while British Columbia's Lower Mainland and Ontario's Greater Golden Horseshoe are tracking toward more balanced territory.
Prices stabilise after prolonged decline
July delivered the first month-over-month increase in the MLS Home Price Index since November 2024, with a modest 0.1% gain. On a year-over-year basis, the index remains down 3.3%, underscoring how far prices have retreated from recent highs.
The national average sale price in July was $674,819, up just 0.2% compared with the same month in 2025. That flat trajectory reflects a market in transition rather than in freefall, but not yet in recovery mode.
What this means for Canadian wealth planning
Housing wealth represents a significant portion of net worth for many Canadians, making these trends directly relevant to wealth management practice.
As mortgage renewals continue to roll through the market in 2026 and 2027, clients with variable-rate exposure or upcoming fixed-rate renewals may face cash flow pressure that warrants proactive financial planning conversations.
CREA's full July 2026 statistics report is available through the association's website.
