Broader Market Signs of Life Emerging in July — Canadian Housing Shows Resilience

July 2025 brought signs of recovery to Canada’s housing market, with sales rising in Toronto, Vancouver, Calgary, and Montreal despite global trade tensions. Here’s what it means for buyers and mortgage professionals.

InMortgage News, Market Insights
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Housing Market Turns a Corner Despite Global Headwinds

Canada’s housing market showed renewed momentum in July 2025, with early signs of recovery spreading across several key regions. The rebound comes in the face of external economic challenges, including global trade tensions and new U.S. tariffs on Canadian exports.

According to preliminary MLS® data, sales volume ticked higher month-over-month in Toronto, Vancouver, Calgary, and Montreal, supported by stabilizing borrowing costs and improving buyer sentiment. While activity remains below the highs of 2021, the pace of decline has slowed, and certain submarkets are beginning to post year-over-year gains.

Key July 2025 Market Trends

Region	Monthly Sales Change	Price Movement	Notable Drivers
Toronto	+3%	–1.2% YoY	Lower condo prices attracting first-time buyers
Vancouver	+2.7%	+0.8% YoY	Limited inventory in detached segment
Calgary	+4.1%	+3.5% YoY	Population growth, interprovincial migration
Montreal	+5.6%	+4.9% YoY	Strong demand, tight supply

Why Buyers Are Re-Emerging

Interest Rate Stability
After a volatile first half of the year, the Bank of Canada’s decision to pause rate hikes has restored confidence among both buyers and lenders. Pre-approval activity rose in July, hinting at stronger closings in August and September.
Selective Affordability
Price adjustments in certain segments—particularly Toronto condos—are creating entry points for budget-conscious buyers.
Seasonal Strength
Historically, July and August have been slower months, but this year’s late-spring slowdown appears to have pushed activity into the summer.

Mortgage Professional Insights

For brokers and agents, the July market presents both challenges and opportunities:

Lead Conversion Focus: Buyers sitting on the fence are more likely to act with stable rates—follow up aggressively on pre-approvals.
Regional Tailoring: Strategies must differ—condo-focused in Toronto, detached supply targeting in Vancouver, and suburban family homes in Montreal.
Product Positioning: Variable-rate borrowers remain cautious; hybrid and shorter fixed terms are gaining traction.

Looking Ahead

CREA’s forward-looking indicators suggest that sales momentum could carry into early fall, provided interest rates remain stable and inventory constraints ease. However, risks remain, with tariffs and global economic uncertainty posing potential headwinds.

Why It Matters
The Canadian housing market’s resilience in July underscores the adaptability of buyers and the importance of targeted mortgage strategies. For industry professionals, the next 90 days will be critical to locking in transactions before any new economic shocks.