Canadian Home Sales Rise 3.8% in July Amid Steady Prices

Canadian home sales rose 3.8% in July, marking the fourth consecutive month of growth, with Ontario leading the increase. The Greater Toronto Area saw a 7.7% rise in sales, while the national average home price remained steady at $672,784, up just 0.6% from a year ago. The number of listings rose 10.1% year-over-year to 202,500.

Canadian home sales experienced a robust 3.8% increase in July, marking the fourth consecutive month of growth, according to data from the Canadian Real Estate Association (CREA) [1]. The national average home price remained steady at C$672,784, up just 0.6% from a year ago. Ontario, particularly the Greater Toronto Area (GTA), led the surge in sales, with the GTA witnessing a 7.7% rise in sales [2].

The GTA saw 6,100 home sales in July, up by 10.9% compared to July 2024. New listings totalled 17,613, representing a 5.7% year-over-year increase. The average price for condo apartments dipped by 9.3% to C$651,483, while townhouses saw a 7.4% decrease to C$849,380 [2].

The average home price across Canada rose 1.3% from the previous month to C$687,016, representing a slight 0.6% increase year-over-year. Toronto led the gains with existing home sales jumping 13% from June and 13.2% compared to July last year. The average home price in Toronto edged up 0.3% month-over-month to C$1,069,511, though it remained 5% lower than a year ago [1].

Vancouver also showed strength with sales increasing 8.6% from June, despite being down 1.7% compared to July 2024. The average home price in Vancouver held steady at C$1,251,729, which is 3.6% lower than the same period last year [1].

The number of listings rose 10.1% year-over-year to 202,500, indicating 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," said TRREB President Elechia Barry-Sproule [2].

Recent data suggests that the Canadian economy is treading water in the face of trade uncertainty with the United States. 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 [2].

References:

[1] https://www.investing.com/news/economic-indicators/canadian-home-sales-rise-38-in-july-toronto-leads-with-13-gain-93CH-4194714
[2] https://www.reminetwork.com/articles/july-home-sales-in-gta-strongest-in-four-years/