In August, the Canadian Real Estate Association reported a decline in home sales compared to the previous year due to emerging economic challenges that could potentially slow down the housing market’s progress for the rest of the year. Total home sales for August reached 37,504, marking a 6.9% decrease from the same period in 2025. When seasonally adjusted, there was a 0.7% drop in activity compared to July 2026.
According to Shaun Cathcart, CREA’s senior economist, the looming risks of rising inflation and potential interest rate hikes have created a fragile economic climate that may impact sales performance negatively. The national average sale price of homes in August stood at $668,219, reflecting a modest 0.6% increase year-over-year.
CREA noted a 3.3% increase in new listings in August compared to the previous month, breaking a trend of three consecutive declines earlier in the summer.