Canadian Home Sales Edge Up 0.5% in July, Market Nears Balance Amid Price Stability
Global real estate markets see mortgage rates climb, while some national markets rebalance with stabilizing prices and shifting inventory.
The story
The Canadian housing market showed signs of rebalancing in July 2026, with home sales edging up 0.5% month-over-month, marking the fourth consecutive monthly gain. The Canadian Real Estate Association (CREA) reported 43,578 total home sales for July, a 5.3% decrease from the previous year, but a modest increase from June.
The national average sale price for a home in July stood at $674,819, a slight 0.2% increase year-over-year. CREA's Senior Economist Shaun Cathcart noted that markets across the country are generally moving back towards balance, with new listings declining 1.6% month-over-month.
Meanwhile, in the US, 30-year fixed mortgage rates climbed to an average of 6.68% as of August 19, with some refinance rates hitting 7.05% on August 18. China's property market continued its prolonged downturn, with new home prices falling 0.18% month-over-month in July, marking the 38th consecutive monthly decline.
G20 + UAE this cycle
| Country | Price Yoy Pct | Prime Yield Pct | Mortgage Rate Pct | Direction |
|---|---|---|---|---|
| Canada | 0.2 | rebalancing | ||
| United States | 1.5 | 6.68 | tightening | |
| China | easing | |||
| Argentina | ||||
| Australia | ||||
| Brazil | ||||
| France | tightening | |||
| Germany | tightening | |||
| India | ||||
| Indonesia | ||||
| Italy | ||||
| Japan | ||||
| Mexico | ||||
| Russia | ||||
| Saudi Arabia | ||||
| South Africa | ||||
| South Korea | ||||
| Turkey | ||||
| United Kingdom | tightening | |||
| UAE |
India corner
India's housing market experienced a slowdown in the second quarter of 2026, with sales across the top eight cities declining by 6.1% year-on-year, according to PropTiger's Real Insight Residential report published on August 19. A total of 91,729 housing units were sold in these cities, down from 97,674 units a year prior.
The report attributes this weakening buyer sentiment, particularly among technology professionals, due to recent layoffs and AI-led workforce changes. Pune recorded the sharpest annual decline in sales at 20.8%, followed by Ahmedabad with a 20.2% drop.
Bengaluru, Delhi-NCR, and Mumbai Metropolitan Region (MMR) each saw sales fall by 7%. However, Hyderabad and Chennai bucked the trend, with sales growing 14.6% and 36% year-on-year, respectively. Despite the overall sales decline, residential prices across the eight cities continued to rise, with the average sales-weighted price increasing 1% quarter-on-quarter to ₹10,153 per sq ft.
Spotlight country
In Europe, rising borrowing costs are impacting real estate financing. On August 18, reports indicated that French borrowing costs have climbed to their highest levels since 2008.
Similarly, German yields are trading around levels last seen in 2011, and UK gilt yields are nearing 6%. This upward pressure on long-end bond yields is creating a more defensive tone across financial markets, as investors demand higher compensation for long-term sovereign debt. While specific real estate transaction data for this week is not yet available, the increase in government borrowing costs suggests a tightening environment for mortgage rates and property yields, influencing investor decisions and development viability across the French market.
The contrarian view
Michael Zuber, known for his 'One Rental at a Time' platform, warned on August 18, 2026, that 'The Biggest Housing Crash We've Ever Seen is Coming.' Zuber discussed rising distress and market predictions, emphasizing the potential for a significant downturn. His view highlights concerns over increasing foreclosures and the overall economic outlook, suggesting that while many focus on current high prices, underlying market weaknesses could lead to a substantial correction.
What we'll be watching
- Housing Starts and Permits data release (August 20, 2026)
- E-Commerce Retail Sales data release (August 20, 2026)
- MBA mortgage applications report (August 21, 2026)
- FOMC minutes release (August 21, 2026)
- Jobless claims report (August 22, 2026)
Reporting + analyst voices: grounded via Google Search at publish time.