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Canada’s housing market posted another month of gains in June, with home sales rising 2.8% month-over-month, building on the 3.6% increase seen in May.
The gains were driven largely by a rebound in the Greater Toronto Area, where transactions have now jumped 17.3% since April, according to the Canadian Real Estate Association (CREA).
"June was pretty close to a carbon copy of May, with sales up about 3% on a month-over-month basis and prices once again holding steady,” said CREA Senior Economist Shaun Cathcart. "It’s another month of data suggesting the anticipated rebound in Canadian housing markets may have only been delayed by a few months... although with the latest 35% tariff threat, we’re not out of the woods yet.”
New listings declined 2.9% in June, even as sales rose. That nudged the sales-to-new listings ratio up to 50.1%, up from 47.3% in May. While conditions remain looser than average, the national inventory is now just 1% below its long-term norm.
Prices steady, but gains remain elusive
The national average sale price was $691,643 in June, down 1.3% compared to a year ago. The MLS Home Price Index was nearly flat for the month (-0.2%) and down 3.7% year-over-year.
TD Economist Marc Ercolao noted the gradual recovery is likely to continue.
"We expect home sales will continue to rise in the second half of the year as pent-up demand continues to trickle into the market. That said, the sales level should remain subdued as economic uncertainty remains elevated, especially with Canada facing new tariff threats.”
He also said average home price growth will likely remain weak given still loose supply-demand conditions in key provinces like B.C. and Ontario.
June market snapshot
• Home sales: +2.8% m/m, +3.5% y/y
• New listings: -2.9% m/m
• Sales-to-new listings ratio: 50.1% (long-term avg: 54.9%)
• MLS HPI: -0.2% m/m, -3.7% y/y
• Average home price: $691,643 (-1.3% y/y)
• Months of inventory: 4.7 (below long-term avg of 5.0)
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