In August, the Canadian Real Estate Association reported a decrease in home sales compared to the previous year, citing emerging economic challenges that may hinder market growth for the rest of the year. Total home sales for the month reached 37,504, marking a 6.9% decline from August 2025. Adjusted for seasonal variations, sales activity dropped by 0.7% compared to July.
Shaun Cathcart, the senior economist at CREA, highlighted concerns over rising inflation and potential interest rate hikes, indicating a weakened economic landscape that could impact sales. Despite the decline in sales volume, the national average selling price of homes in August rose by 0.6% year-over-year to $668,219.
Additionally, CREA noted a 3.3% increase in new listings in August compared to the previous month, reversing a trend of three consecutive monthly declines earlier in the summer. This shift in new listings suggests a potential uptick in market activity following a period of stagnation.
