Housing Market Chartbook: More Signs of Price Stability Could Spur Buyer Demand

Research evidence excerpt

Housing Market Chartbook: More Signs of Price Stability Could Spur Buyer Demand

Canada | Banks EquityJulyResearch16, 2026

Figure 1 - Monthly Home Sales vs. 10YHousing Market Chartbook: More Signs of Price

Monthly Moving Average

80,000Stability Could Spur Buyer Demand 70,000

60,000

50,000

40,000Home sales activity continued to climb in June while new listings fell back,

30,000

20,000driving sales-to-new-listings ratio further up. Although the average home 10,000

sales price edged lower from May, it remained above last year for the third 0Jan-07 Jul-09 Jan-12 Jul-14 Jan-17 Jul-19 Jan-22 Jul-24

consecutive month, reinforcing signs that home prices have stabilized. CREA .Source: Canadian RealHome SalesEstate Association;10Y Mthly MovingJefferiesAvg

expects home sales activity to improve further in the second half of the year, as

price stability could attract buyers waiting on the sidelines.

Home sales ticked up in June. According to data released by CREA, home sales in Canada rose

0.5% m/m in June but are still down 2.2% from a year ago. On the pricing side, the average home

sales price fell 0.8% m/m but +0.5% compared to last year.

“ Looking ahead, fixed mortgage rates have eased from their peak in April, and rate hikes

from the Bank of Canada this year are much less likely than they were just a month ago. This

is good news for borrowers. Additionally, home prices are no longer falling in most of the

markets where they were previously, which had likely been keeping a lot of buyers waiting on

the sidelines. As such, we continue to expect the second half of the year to be quite a bit more

active than the first half. ”

- Shaun Cathcart, CREA’s Senior Economist

New listings ease further following strong spring listings in April, driving sales-to-new listing

ratio higher.