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Canada’s housing market showed signs of a slowdown in July after gaining momentum in June, as reported by the Canadian Real Estate Association (CREA). Despite the optimism following the Bank of Canada's interest rate cuts, the national benchmark sale price saw a minor increase of 0.2% from June and a year-over-year decline of 4.2%, with home sales dipping by 0.7%. Experts believe this slowdown might be temporary, influenced by high interest rates and affordability issues, which have kept first-time homebuyers, a crucial market segment, on the sidelines.

CREA’s senior economist, Shaun Cathcart, noted that with recent rate cuts and more expected, demand is likely to grow, setting the stage for a stronger housing market in 2025. Phil Soper, CEO of Royal LePage, emphasized that the absence of first-time buyers is a key reason for the market's sluggish recovery. He anticipates that their return will reignite the entire real estate cycle, leading to increased activity across all market segments, especially in higher-priced homes.

The end of July saw 183,450 properties listed on Canadian MLS Systems, up 22.7% from last year, though still below historical averages. Regional market performance varied, with declines in areas like Calgary and the GTA being offset by gains in Edmonton and Hamilton-Burlington. James Mabey, chair of CREA, suggests that while the July data doesn’t show it, the conditions are being set for a more active housing market, potentially reducing the relaxed pace of house hunting in the near future.

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