In August, the Canadian Real Estate Association reported a decline in home sales compared to the previous year amidst emerging economic challenges that could slow down housing market growth for the rest of the year. Total home sales for the month reached 37,504, marking a 6.9% drop from August 2025. Seasonally adjusted, sales decreased by 0.7% when compared to July of this year.

Senior economist Shaun Cathcart from CREA highlighted that the escalating risks of inflation and potential interest rate hikes have created a less favorable economic climate, potentially impacting sales activity. The national average sale price of a home in August was $668,219, representing a 0.6% increase from the previous year.

Furthermore, CREA noted a 3.3% increase in new listings in August compared to the previous month, reversing a trend of three consecutive declines experienced earlier in the summer.