- Introduction
In July 2025, Canadian home sales reached their lowest levels in over a year, signaling a continued slowdown in the housing market. This decline reflects broader economic uncertainties and shifting buyer behaviors.
- Key Market Indicators
Sales Decline: National home sales decreased by 2.8% month-over-month in June 2025, marking the lowest point since mid-2024.
Inventory Levels: Despite the sales dip, inventory levels have increased by 11.4% compared to the previous year, offering more options for prospective buyers.
Average Home Prices: The national average home price fell by 1.3% year-over-year, reflecting a softening in market values.
- Regional Variations
Greater Toronto Area (GTA): The GTA experienced a 17.4% cumulative increase in home sales since April 2025, indicating a regional rebound amidst national declines.
Other Regions: Many other regions continue to experience sluggish sales, with limited activity in both urban and rural markets.
- Economic Influences
Interest Rates: The Bank of Canada reduced its policy rate from 5% in April 2024 to 2.75% in July 2025, aiming to stimulate economic activity and ease borrowing costs.
Tariff Uncertainties: New tariff policies introduced by the U.S. have introduced additional uncertainties into the market, potentially affecting cross-border trade and investment.
- Future Outlook
Short-Term Forecast: The Canadian Real Estate Association (CREA) projects a 3% decline in home sales for 2025 compared to 2024, with a slight decrease in average home prices.
Long-Term Projections: In 2026, CREA anticipates a 6.3% rebound in home sales, returning to levels closer to historical averages.
- Conclusion
The Canadian housing market in mid-2025 is characterized by declining sales, increased inventory, and softening prices. While certain regions like the GTA show signs of recovery, broader national trends indicate a cautious market environment. Prospective buyers may find opportunities in the current market, but should remain informed of ongoing economic developments.