Market Watch - The Real Estate Market is Experiencing an Increased Volatility.

Some markets in Canada are encountering more pronounced slowdowns—with declining sales, price corrections, and rising inventory levels outpacing demand.

However, improved affordability, brought about by lower home prices and borrowing costs, is starting to translate into increased home sales. More relief is required, particularly where borrowing costs are concerned. Still, it’s clear that a growing number of households are finding affordable options for homeownership.

Ontario - Real Estate Markets Experiencing an Increased Volatility.

Toronto, August 6, 2025 -- The Greater Toronto Area (GTA) experienced the best home sales result for the month of July since 2021. Sales were also up relative to listings, suggesting a modest tightening in the market compared to last year.

“Improved affordability, brought about by lower home prices and borrowing costs, is starting to translate into increased home sales. More relief is required, particularly where borrowing costs are concerned, but it’s clear that a growing number of households are finding affordable options for homeownership,” said Toronto Regional Real Estate Board (TRREB) President Elechia Barry-Sproule.

GTA REALTORS® reported 6,100 home sales through TRREB’s MLS® System in July 2025 – up by 10.9% compared to July 2024. New listings entered into the MLS® System totalled 17,613 – up by 5.7% year-over-year.  

On a seasonally adjusted basis, July home sales increased month-over-month compared to June 2025. New listings also rose compared to June, but at a significantly slower rate. With sales increasing relative to listings, market conditions tightened.

The MLS® Home Price Index Composite benchmark fell by 5.4% year-over-year in July 2025. The average selling price, at $1,051,719, was down by 5.5% compared to July 2024. On a month-over-month seasonally adjusted basis, the MLS® HPI Composite and average selling price remained flat compared to June.

“Recent data suggest that the Canadian economy is treading water in the face of trade uncertainty with the United States. A key way to mitigate the impact of trade uncertainty is to promote growth in the domestic economy. The housing sector can be a catalyst for growth, with most spin-off expenditures accruing to regional economies. Further interest rate cuts would spur home sales and see more spin-off expenditures, positively impacting the economy and job growth,” said TRREB Chief Information Officer Jason Mercer.

“Despite widespread belief that the federal foreign buyer ban prohibits all foreign nationals from purchasing residential properties in Canada, there are exemptions that allow non-residents to buy property, resulting in spin-off benefits to the economy. Foreign buyers can purchase multi-unit buildings with four or more units and vacant land or land for development. Non-residents can also buy other residential properties outside urban centres, including recreational properties,” said TRREB CEO John DiMichele.

Ottawa, Signs of Growth Amid Ottawa’s Steady Housing Market

Ottawa, August 7, 2025 — Ottawa’s housing market continues to demonstrate steady demand, moderate price growth, and a healthy level of supply—even as other markets experience increased volatility.

Nevertheless, it is important to keep an eye on what is happening across the province. Some markets in Ontario are encountering more pronounced slowdowns—with declining sales, price corrections, and rising inventory levels outpacing demand.

Historically, the perception is that Ottawa has been somewhat insulated from such extremes, due in part to its stable employment base and consistent population growth, but it is not entirely immune. Broader provincial or national trends have the potential to ripple through the local market over time.

Currently, the rise in active listings both year-over-year and compared to the five-year average may serve as an early indicator of rising supply pressure. At the same time, the sales-to-new-listings ratio changed from 51.7% to 55.1% from a year ago, providing a mixed signal that may indicate demand is currently keeping pace with supply. For the time being, this rise in inventory provides buyers with more choice, but this is certainly a trend worth monitoring.

“While we’ve seen demand may be softening in the condo market, especially in the downtown core, as a whole, Ottawa’s real estate market continues to stand out for its resilience and stability,” says Paul Czan, President of the Ottawa Real Estate Board (OREB). “With steady demand, balanced inventory, and moderate price growth, our fundamentals remain strong. We’re keeping a close eye on changing dynamics, and we’ll continue monitoring the data and providing transparent insights to help our Members and the public navigate with confidence.” 

In July 2025, a total of 1,318 homes were sold across the Ottawa Real Estate Board (OREB) region. While this is down from 1,602 units in June, it represents a 4.9% increase over July last year.

Looking at the bigger picture, there have been 8,704 home sales so far this year, which is 3.1% higher than at this time in 2024.

The average sale price for all sold listings in July was $695,209, up 2.2% from last year.

This year, the average year-to-date price is $702,840, a 3% increase over the first seven months of 2024.

Altogether, the total value of homes sold in July reached approximately $920 million, up 7.2% year-over-year, representing a huge contribution to the overall Ottawa economy.

On the listing side, there were 2,549 new residential listings added in July, a solid 11.7% increase compared to last year, and 4,205 active listings on the market, up 14% from July 2024, and 23.6% above the five-year average for this time of year.

Finally, the months of inventory—a measure of supply—rose slightly to 3.2 months, up from 2.9 at this time last year and 2.7 months from last month. 3.2 months of inventory is typically understood to be an indicator of what is considered a balanced market.

As for prices, the MLS® Home Price Index (HPI) composite benchmark price in Ottawa was $633,100 in July, a modest 1.9% increase year-over-year.

British Columbia - Sales Recovery Continues in July 

Vancouver, August 5, 2025 – Home sales registered on the MLS® across Metro Vancouver* in July extended the early signs of recovery that emerged in June, now down just 2% from July of last year.

The Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 2,286 in July 2025, a 2% decrease from the 2,333 sales recorded in July 2024. This was 13.9% below the 10-year seasonal average (2,656).

"The June data showed early signs of sales activity in the region turning a corner, and these latest figures for July are confirming this emerging trend. Although the Bank of Canada held the policy rate steady in July, this decision could help bolster sales activity by providing more certainty surrounding borrowing costs at a time when economic uncertainty lingers due to ongoing trade negotiations with the US."

Andrew Lis, GVR director of economics and data analytics

There were 5,642 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in July 2025. This represents a 0.8% increase compared to the 5,597 properties listed in July 2024. This was 12.4% above the 10-year seasonal average (5,018).

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 17,168, a 19.8% increase compared to July 2024 (14,326). This is 40.2% above the 10-year seasonal average (12,249).

Across all detached, attached and apartment property types, the sales-to-active listings ratio for July 2025 is 13.8%. By property type, the ratio is 10.2% for detached homes, 16.7% for attached, and 15.9% for apartments.

"With the rate of homes coming to market holding steady in July, the inventory of homes available for sale on the MLS® has stabilized at around 17,000. This level of inventory provides buyers plenty of selection to choose from,” Lis said.

“Although sales activity is now recovering, this healthy level of inventory is sufficient to keep home prices trending sideways over the short term as supply and demand remain relatively balanced. However, if the recovery in sales activity accelerates, these favorable conditions for home buyers may begin slowly slipping away, as inventory levels decline, and home sellers gain more bargaining power.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,165,300. This represents a 2.7% decrease over July 2024 and a 0.7% decrease compared to June 2025.

Sales of detached homes in July 2025 reached 660, a 4.1% decrease from the 688 detached sales recorded in July 2024. The benchmark price for a detached home is $1,974,400. This represents a 3.6% decrease from July 2024 and a 1% decrease compared to June 2025.

Sales of apartment homes reached 1,158 in July 2025, a 2.9% decrease compared to the 1,192 sales in July 2024. The benchmark price of an apartment home is $743,700. This represents a 3.2% decrease from July 2024 and a 0.6% decrease compared to June 2025.

Attached home sales in July 2025 totalled 459, a 5% increase compared to the 437 sales in July 2024. The benchmark price of a townhouse is $1,099,200. This represents a 2.3% decrease from July 2024 and a 0.4% decrease compared to June 2025.  

Alberta - Supply Growth Weighs on Home Prices

Calgary, August 1, 2025 –Thanks to gains mostly occurring in the newer communities, inventory levels in July were 6,917 units, reaching levels not seen since prior to the pandemic and higher than long-term trends. While supply has improved across all property types and all districts, the largest gains are occurring in the areas where there has been new community growth.  

The additional supply has weighed on home prices in some parts of the city. The total residential benchmark price in Calgary has trended down over the past several months and is currently 4% below last year's peak price reported in June 2024.  

"Price declines are not occurring across all property types in all locations of the city, and even where there have been declines, it has not erased all the gains made over the past several years," said Ann-Marie Lurie, Chief Economist at CREB®. "The steepest price declines have occurred for apartment and row style homes, mostly in the North East and North districts, which coincides with significant gains in new supply."  

The rise in supply occurred as sales continued to slow and new listings improved. In July, there were 2,099 sales, a 12% decline over last year, while new listings reached 3,911 units, an over 8% increase over last year. In addition to the persistent economic uncertainty due to tariffs, sales and new listings were impacted by no further reductions in lending rates and added competition from the new home market. Apartment-style homes are reporting the highest months of supply, with over four months, while both detached and semi-detached homes are seeing conditions remain relatively balanced at just three months of supply.   

Monthly Housing Stats July

Detached- For the first time since 2020, the months of supply for detached homes rose to three months. Sales activity slowed to 1,031 units in July, while the number of new listings, despite being slower than last month, was still nearly 10% higher than last year's levels and above long-term trends. The wider gap between sales and new listings led to a significant adjustment in inventory levels, and with slower sales, the months of supply rose to three months. However, conditions did vary significantly depending on location. In the North West, West and South districts, the months of supply remained well below three months, whereas the North East reported the highest months of supply at over four months.  

A shift to balanced conditions has taken much of the pressure off home prices. As of July, the detached benchmark price was $761,800, down less than 1% over last year. However, there was a significant range of price adjustments. Both the North East and East districts have reported the largest decline in price at 5%, though prices still rose in the City Centre by nearly 2%.  

Semi-Detached - Sales activity in July continued to slow, contributing to the year-to-date decline of 11%. At the same time, new listings have generally been higher this year compared to last year, supporting inventory gains. With 549 units in inventory and 187 sales, the months of supply in July rose to three months, something that has not happened since 2021.  

Although supply is improving in relation to sales, prices have remained relatively stable. As of July, the benchmark price in the city was $697,500, 1% higher than last July. Price growth did range throughout each district, with the highest gains occurring in the City Centre, with nearly 3% growth. Meanwhile, prices declined over last year in the North East, East and North districts.

Row - Like other styles of homes, sales have eased compared to last year, with new listings and inventories rising over last July. The months of supply in July was similar to last month at over three months, with a range of under three months of supply in the City Centre, North West , South and South East, to nearly five months of supply in the North East district.

Row prices have generally been trending down over the past three months, and while they are nearly 4% lower than last year at this time, on a year-to-date basis, they have remained similar to last year. When considering activity by district, year-to-date price declines have been reported in the North East and North, while prices have risen in all other districts.

Apartment Condominium - There were 1,014 new listings in July relative to 508 sales, keeping the sales-to-new listings ratio at 50% and inventory levels elevated at 2,097 units. Higher inventories and slower sales caused the months of supply to push above four months in July, the highest it has been since 2021. Added competition for new product combined with rising rental vacancy rates has impacted the resale condominium market.

The additional supply choice is having a more significant impact on apartment-style prices over any other property type. In July, the benchmark price was $329,600, which is down over 1% compared to last month and nearly 5% lower than levels reported last year. However, when considering year-to-date figures, prices have remained stable compared to last year as gains in the West, South and North West have offset declines occurring in the North East, North, South East and East districts.

REGIONAL MARKET FACTS

Airdrie - Due to declines in both row and apartment sales, July sales slowed by 14% compared to last July, contributing to the year-to-date decline of 12%. While sales have slowed, activity remains higher than levels reported prior to 2021. What has changed is the significant improvement in new listings, resulting in inventory gains. As of July, inventory levels rose to 543 units, the highest July reported since the peak in 2018. The higher inventory levels kept the months of supply above three months in July, placing some downward pressure on home prices. In July, the benchmark price was $532,800, nearly 4% lower than levels reported last year at this time. However, last year's gains were exceptionally high earlier in the year, and on a year-to-date basis prices are only slightly lower than last year. 

 Cochrane - Unlike other areas, Cochrane has not seen the same level of pullback in sales compared to long-term trends. While July sales were down by 7%, year-to-date sales are 2% lower than last year and 23% higher than long-term trends. New listings in July did reach a record high for the month, causing inventories to push to the highest level reported for the month since 2019 and causing the months of supply to rise above three months. While this likely contributed to some of the monthly decline in price, unlike other areas the July benchmark price of $590,000 was over 2% higher than last year, and 4% higher on a year-to-date basis.

Okotoks - This market continues to exhibit tighter market conditions than both Airdrie and Cochrane with a sales-to-new-listings ratio of 71% and months of supply at just over two months. This is a significant improvement compared to the previous four years, where the months of supply in July was just over one month. In July, the benchmark price in the area was $628,500, slightly lower than last month, but higher than last year's level. Despite some monthly fluctuations, year-to-date prices are over 2% higher than last year.