Canadian Home Sales Rise 6.6 Percent in July as Market Recovery Gains Momentum
Ottawa, The Gulf Observer: The Canadian Real Estate Association (CREA) reported that national home sales in July rose 6.6 percent compared with a year ago, marking the fourth consecutive monthly increase and signaling a stronger-than-expected market recovery.
A total of 45,973 homes changed hands, up from 43,122 in July 2024. On a month-over-month basis, sales were up 3.8% from June, and transactions have now risen 11.2% cumulatively since March.
CREA’s senior economist Shaun Cathcart noted that the market’s rebound reflects the long-anticipated post-inflation crisis recovery in housing. He added that the coming months will reveal how buyers respond to an expected burst of new supply in September.
The Greater Toronto Area (GTA) led the surge, with transactions rebounding by 35.5% since March. TD economist Rishi Sondhi attributed the sales momentum to pent-up demand and said easing economic uncertainty and further rate cuts from the Bank of Canada could boost activity, especially in Ontario and British Columbia.
At the same time, barriers remain, including stretched affordability in several provinces and a weaker job market.
New listings in July edged up 0.1% month-over-month, with 202,500 properties on the market, 10.1% higher than a year ago and in line with long-term seasonal averages.
The average national home price stood at $672,784, up 0.6% from July 2024. CREA’s benchmark home price index remained unchanged between June and July.
BMO senior economist Robert Kavcic described the housing market as “balanced and stable” over the summer, noting that while regional variations persist, national sales have returned closer to long-term norms, inventories remain elevated but manageable, and prices are flat.
