Four straight monthly gains can’t hide how far Canada’s housing market has to go
That arithmetic alone captures the market’s predicament. New listings fell a further 1.6% in July from June, reducing earlier concerns that a concentration of mortgage renewals could produce a wave of distressed selling.
Canadian home sales extended their recovery in July, with the Canadian Real Estate Association (CREA) reporting a fourth consecutive monthly gain as tightening supply and stabilising prices nudge the national market closer to balance.https://t.co/GDRsSHHZVC
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 18, 2026
A floor appears to be forming under home prices
The national aggregate MLS Home Price Index rose for a second consecutive month in July, back-to-back gains not recorded since early 2024, according to Hogue.
That sequential advance, however tentative, signals that the cyclical price floor may be in place at the national level, even if the road to recovery from there is a slow one.
The rebalancing has been driven partly by stabilizing inventory in Ontario and British Columbia, where listings had accumulated rapidly over the past three years.
Ontario is showing the clearest signs of momentum: resales climbed in Toronto, Hamilton, Kitchener-Waterloo, London, and Ottawa in July, with benchmark values rising in Toronto and Ottawa. Year-over-year, however, transactions and prices across most of the province remain below 2025 levels.
