In August, home sales in Canada witnessed a decline compared to the same period last year amid looming economic challenges that could dampen the housing market’s momentum for the rest of the year. The Canadian Real Estate Association reported a total of 37,504 home sales last month, marking a 6.9% decrease from August 2025. Adjusted for seasonal variations, activity dropped by 0.7% compared to July 2026.
According to Shaun Cathcart, CREA’s senior economist, the current economic climate, characterized by escalating inflation risks and potential interest rate hikes, may negatively impact sales activity. The national average selling price of homes in August stood at $668,219, reflecting a modest 0.6% increase from the previous year.
In a positive development, new listings in August saw a 3.3% month-over-month increase, reversing a trend of three consecutive declines earlier in the summer. This uptick in new listings could potentially inject some vitality into the market.
