Canadian housing market shows first price gain in 20 months amid balanced conditions

The Canadian housing market turned a corner in July 2026 when benchmark home prices edged up 0.1% from June, posting their first gain in 20 months. This modest improvement reflects a gradual rebalancing of supply and demand across the country, though prices remain significantly down from their pandemic peaks.

Market shifts toward balance

• Prices stabilizing: National average home price was $674,819 in July (up 0.2% year-over-year), while condos dropped 5.5% annually
• Regional convergence: Markets across the Prairies, Quebec, and the East Coast are cooling from sellers' markets, while B.C. and Ontario have shifted back into balanced conditions
• Inventory tightening: Months of inventory fell to 4.7 (lowest of 2026), and the sales-to-new-listings ratio tightened to 51.3%, near the long-term 54.7% average

Rents, however, continue declining: the average rent dropped 4% year-over-year to $2,037 in June. Mortgage renewals remain a headwind—many five-year fixed mortgages issued in 2021 at lower rates are renewing at higher rates in 2026, adding hundreds monthly to homeowners' payments.

For newcomers evaluating whether to buy or rent, this is a sensible moment to run your own numbers. Rental prices are softening in many markets, making renting more attractive short-term while you settle in and understand local conditions. If you're considering a purchase, fixed-rate mortgages are available near 4.24% for five-year terms. Those renewing mortgages should lock in rates soon—further rate stability (expected through 2026) means pricing clarity, though rates won't fall much further.

Sources

• Canadian Real Estate Association — August 18, 2026 Statistics Release
• WOWA — Canadian Housing Market Report August 19, 2026