National home sales climb for fourth straight month in July

Canadian home sales rose for the fourth straight month in July and property prices climbed incrementally, small signs that the market may be rebounding.

There were 38,124 purchases last month, according to the Canadian Real Estate Association, marking the fourth month of increased transactions after removing seasonal influences.

July also had the highest volume of monthly sales so far this year.

At the same time, the typical home price rose slightly month over month, instead of falling or remaining flat. The home price index climbed 0.1 per cent from June to July, to $658,000. The last time the index rose on a monthly basis was in November, 2024, when it increased by 0.2 per cent.

“To not announce a decline is significant,” Shaun Cathcart, CREA’s senior economist, said.

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Compared to a year ago, the home price index was down 3.2 per cent. Mr. Cathcart said the real estate market has become more attainable and affordable for prospective buyers.

The home price index is 20 per cent below the record high of $826,800 in February, 2022.

As well, mortgage rates are lower than two years ago. Five-year fixed mortgages are being marketed with an interest rate of a little more than 4 per cent, according to rate comparison web sites. In early 2024, the same product had an interest rate of more than 5 per cent.

“Prices have come down, interest rates have come down,” Mr. Cathcart said. “Attainability is starting to come back.”

CREA has forecast higher activity in the second half of the year. Although fewer homeowners have been putting their homes up for sale, Mr. Cathcart expects more listings to hit the market after Labour Day.

And after four months of increasing sales activity, Mr. Cathcart said the market may have turned a corner.

In Ontario, the country’s largest real estate market, sales climbed 2.5 per cent month over month, with the Toronto region leading the way. In Quebec, the second-largest real estate market, the number of purchases rose 0.3 per cent over the same time period.

In British Columbia, Alberta and Saskatchewan, transactions fell 0.1 per cent, 1.4 per cent and 4.9 per cent, respectively.