Canadian Housing Market Shows Early Recovery Signs Amid Price Drops

The Canadian housing market, particularly in the Greater Toronto Area (GTA), is showing early signs of recovery despite ongoing price declines and economic uncertainties. Home prices in the GTA fell by over 5 percent year-over-year, with increased inventory and new listings providing buyers more negotiating power amid lower borrowing costs. Sales activity, however, has started to improve, with a month-over-month sales increase in June and a 3.6 percent rise nationally between April and May 2025, marking the first gain in several months. Experts attribute this stabilization partly to easing trade tensions and suggest the anticipated market turnaround may have been delayed rather than derailed. Meanwhile, the UK construction sector also reflects mixed trends, with house building expanding for the first time since late 2024, though civil engineering and commercial construction continue to contract, highlighting uneven recovery dynamics. Overall, cautious optimism prevails among market analysts, who note the fragility of the broader economic outlook but acknowledge the potential for gradual improvement in housing activity.