The Canadian Real Estate Association reports a decline in home sales for August compared to the same period last year, signaling potential challenges that could slow down the housing market’s momentum for the rest of the year. In August, a total of 37,504 homes were sold, marking a 6.9% decrease from August 2025. Adjusted for seasonal variations, sales dropped by 0.7% compared to July.
CREA’s senior economist, Shaun Cathcart, attributes this decline to growing inflation concerns and the looming possibility of interest rate hikes, creating an uncertain economic landscape that may impact sales activity. The national average sale price of a home in August stood at $668,219, reflecting a modest increase of 0.6% from the previous year.
Despite the overall decrease in sales, CREA notes a positive trend in new listings for August, with a 3.3% increase compared to the previous month. This uptick in listings follows three consecutive months of declines earlier in the summer, indicating a potential shift in market dynamics.
These developments suggest a delicate balance in the Canadian housing market, influenced by economic factors that could shape the trajectory of real estate activity in the coming months.