Canadian Home Sales Hit 2026 Peak Amid Affordability Gains

The Canadian Real Estate Association reported that national home sales in July reached their highest monthly level of 2026, marking the fourth consecutive monthly gain on a seasonally adjusted basis. While total sales of 43,578 represented a 5.3% decrease from the previous year, activity rose 0.5% from June. The national average sale price stood at $674,819, a 0.2% year-over-year increase, though the home price index for typical homes declined 3.3% annually.

Market activity was driven largely by improved affordability in Ontario, where sales grew by 2.5%. In contrast, transactions declined in British Columbia, Alberta, and Saskatchewan. The association attributed the rebound to increased attainability resulting from lower home prices and reduced mortgage rates, with five-year fixed mortgages now marketed slightly above 4% compared to over 5% in early 2024.

Industry leaders described the market as moving toward a more balanced state. Phil Soper of Royal LePage characterized the environment as healing, noting that expensive markets are beginning to reflect the activity seen in more affordable regions earlier in the year. While total properties listed for sale rose 0.6% year-over-year to 205,388, new listings have dropped for three consecutive months.