In August, the Canadian Real Estate Association reported a decline in home sales compared to the previous year amid ongoing economic challenges that may hinder the housing market’s growth for the rest of the year. A total of 37,504 homes were sold last month, marking a 6.9% decrease from August 2025. When adjusted for seasonal variations, sales activity dropped by 0.7% in comparison to July 2026.
CREA’s senior economist, Shaun Cathcart, highlighted that escalating inflation and potential interest rate hikes have created a less favorable economic climate, potentially impacting sales. The average sale price of a home in August stood at $668,219, showing a modest 0.6% increase year-over-year. Additionally, new listings in August experienced a 3.3% uptick from the previous month, breaking a trend of three consecutive declines seen earlier in the summer.