In August, the Canadian Real Estate Association reported a decline in home sales compared to the previous year amid growing economic challenges that could slow down the housing market for the rest of the year. Total home sales for the month were 37,504, marking a 6.9% decrease from August 2025. Seasonally adjusted, sales activity dropped by 0.7% from July 2026.
According to Shaun Cathcart, CREA’s senior economist, the heightened risks of inflation and potential interest rate increases have created a less favorable economic landscape that may impact sales. The national average sale price of homes in August stood at $668,219, showing a modest 0.6% increase year-over-year.
New listings in August saw a 3.3% month-over-month rise, breaking a trend of three consecutive declines earlier in the summer. These developments suggest a challenging environment for the Canadian housing market in the coming months.
