Canada’s real estate markets gave back some of the progress made earlier this year. Canadian Real Estate Association (CREA) data shows fewer home sales in July. Reduced activity combined with already lofty inventory levels to produce the sharpest monthly price drop year-to-date.
Canadian Home Prices Make Sharpest Monthly Drop Since December
Canadian residential real estate: The price of a typical home.
Source: CREA; Better Dwelling.
The price of a typical home slipped 0.6% (-$3.8k) to $661,800 in July, the sharpest monthly drop since December. It’s down 3.3% (-$22.5k) from last year and 21.3% (-$179.3k) below the March 2022 record high. Last month was only the second negative move in 2026 year-to-date, but it was enough to send prices back to February 2026 levels. That’s also roughly the same as it was back in February 2021.
Canadian Home Sales Pull Back, But Stronger Than Initial Correction
Canadian residential real estate: Existing home sales.
Source: CREA; Better Dwelling.
Home sales weakened further last month, falling 5.2% from last year to 43,580 units in July. Last month was weaker than July 2025, but still higher than the same period from 2022 to 2024. In other words, there was a setback, but we’re not back to the worst of the market.
Canadian Home Sellers Still Listing In Higher Than Usual Volumes
Canadian residential real estate: New listings of existing homes for sale.
Source: CREA; Better Dwelling.
New listings pulled back slightly more, but they remain at rarely seen levels. There were 83,300 new listings in July, down 24.2% from last year. Once again, activity was weaker than last year, but July has only seen more new listings five times in at least two decades.
The start of the year saw improvements in sales and prices, but that energy has been fading in recent months. Prices made an abrupt move lower, and sales rolled back some of the progress from last month. Lofty levels of new listings are combining with stagnating unsold inventory, leaving the market unusually well supplied.
