The Canadian housing market continues to show signs of stabilization heading into late 2025, with mixed movements in sales, prices, and inventory.
🔼 Sales & Activity
- In July 2025, home sales across Canada rose 3.8 % compared to June, marking the fourth straight monthly increase.
- Still, while momentum is building, sales remain below the highs seen in late 2024 and early 2025.
💰 Prices & Forecasts
- The national average home price is forecast to decline 1.7 % in 2025, lowering the average to around CAD 677,368.
- Some regional markets are seeing sharper movements: in Ontario and B.C., for instance, home prices are down 2.9 % and 2.4 % respectively year-over-year.
- On the new construction side, the New Housing Price Index (NHPI) slid by 0.8 % year-to-date as of June, reflecting cooling cost pressures.
📦 Inventory & Months of Supply
- The months-of-inventory ratio (a measure of how long current supply would last at current sales pace) dipped from 4.6 months in June to 4.4 months in July — indicating tighter supply relative to demand.
- Analysts observe that sales gains are helping absorb some of the excess listings, pushing inventory back below what’s often considered a “balanced market” threshold.
While the national market is far from runaway growth, the trend in mid-2025 is toward more balanced conditions instead of steep declines. Sales are gradually recovering, prices are under gentle pressure, and inventory is being digested. For buyers, this means cautiously better leverage and more choices. For sellers, it’s a reminder that pricing and presentation must remain sharp.