Canadian Home Prices Slip 3% in July as Tariff-Exposed Markets Are Hit Harder

Economic headwinds and weaker homebuyer sentiment are keeping the Canadian real estate market stuck in neutral this summer.

By Josh Sherman | 4 minute read

The RPS-Wahi House Price Index, created by Real Property Solutions and presented by Wahi, is a trusted indicator of Canadian home price trends.

Wahi, a leading Canadian real estate platform, and Real Property Solutions (RPS), the foremost Canadian provider of property valuation services, today released their price index for July 2026.

In July, the national RPS-Wahi House Price Index — which is based on the latest monthly actual home values in 1,000 towns and cities across the country — declined by 3% on a year-over-year basis. This is approximately consistent with the pace of annual depreciation recorded each month so far this year. 

“Broadly speaking, the Canadian housing market is stuck in neutral and has been for some time,” says RPS-Wahi Economist Ryan McLaughlin. “Homebuying sentiment has soured with economic uncertainty, and although property values in Canada’s most expensive markets have plunged from pandemic highs, affordability challenges are still a reality for many would-be buyers,” he continues.

Other factors keeping a lid on pricing at the national level include pullbacks in immigration and population growth, a labour market that — while displaying resiliency and firming up — still has room for improvement, and high housing  supply levels in select major markets, such as Toronto and Vancouver. This is particularly true of the multi-family segment, which is weighing on the national index.

In particular, townhome prices were down 8% in July on a year-over-year basis, while condo prices dropped 6%. Semi-detached homes followed with a 4% decline, and detached home prices slid 3% lower.

Home Prices Down in 12 Tariff-Sensitive Markets

As trade tensions were mounting early last year, Wahi began monitoring home prices in 19 local economies with heightened exposure to U.S. tariffs. Markets were selected based on the Canadian Chamber of Commerce’s Tariff Exposure Index. At the beginning of 2025, all of these tariff-sensitive markets were seeing annualized price increases. However, last month, a dozen were experiencing year-over-year declines, led by Brantford, Ont. (-10%), Barrie, Ont. (-10%), and Abbotsford, B.C. (-9%).

Housing markets are dynamic and myriad factors influence price trends, so it is impossible to know to what extent tariffs and related concerns are affecting home prices. However, the data suggests they’re taking at least somewhat of a toll on certain markets. 

As Most Markets Rebalance or Correct, Quebec Marches On

Prices are down or flattening in the majority of the 13 major metro areas that RPS-Wahi analyzes each month in addition to the Canada-wide index reading.

Once again, the strongest declines were playing out in southern Ontario — Toronto (-8%) and Hamilton (-7%) — as well as B.C.: Victoria (-6%) and Vancouver (-4%). Also as in previous months, two metro areas in Quebec remain notable exceptions for year-over-year price gains in July: Quebec City (+11%) and Montreal (+6%).

Secondary markets in the Prairies, such as Saskatoon (+4%), Regina (+3), and Winnipeg (+4%), have also shown a degree of strength in the face of the economic turmoil dominating the headlines. These cities — Regina and Winnipeg especially — were among the hottest markets in the country last year, but they have since seen the rate of price growth pull back.

The strongest growth markets in Canada right now are generally those that boast relative affordability and have decent labour prospects, which helps sustain a level of demand that outstrips available supply. 

About the RPS-Wahi House Price Index (HPI)

The RPS-Wahi House Price Index is the most comprehensive source for house price data in Canada and includes the median house price dollar values and extensive additional data by property type from a national to the local level. For more information, the complete methodology is available.

Long-Term Price Trends

The RPS-Wahi House Price Index is based on the latest monthly actual home values in 1,000 towns and cities across the country.

The index shows how property values have changed over time, relative to a base period (Jan. 2005 = 100). An HPI value of 300 means property values have tripled (on a smoothed, adjusted basis) since 2005.

The HPI does not indicate the actual price of a property. It demonstrates how prices have moved relative to the base period. 

Market Momentum

A rising index indicates an upward price trend. A falling index suggests price softening or correction. Since the HPI smooths noise and filters out outliers, it gives a more stable, reliable picture of pricing trends than monthly medians.

The HPI is based on an up-to-six-month rolling average, so it does not reflect short-term volatility, such as one-off surges in prices from luxury sales. All figures are rounded to the nearest whole number.