In August, the Canadian Real Estate Association reported a decrease in home sales compared to the previous year, attributing the decline to emerging economic challenges that could impede housing market growth through the rest of the year. Total home sales for the month reached 37,504, marking a 6.9% drop from August 2025. Adjusted for seasonal variations, activity dipped by 0.7% from July 2026.
CREA’s senior economist, Shaun Cathcart, highlighted the impact of escalating inflation risks and potential interest rate hikes on the economic landscape, potentially hampering sales momentum. The national average selling price of homes in August stood at $668,219, reflecting a modest 0.6% year-over-year increase.
New listings in August saw a 3.3% month-over-month uptick, reversing a trend of three consecutive declines earlier in the summer. This shift in listing activity suggests a potential shift in market dynamics as economic uncertainties loom.
Overall, the recent data from CREA paints a picture of a housing market facing challenges amid evolving economic conditions, indicating a cautious outlook for the industry in the coming months.
