In August, the Canadian Real Estate Association reported a decrease in home sales compared to the previous year amid emerging economic challenges that could impact the housing market’s growth for the rest of the year. Home sales for the month totaled 37,504, reflecting a 6.9% decline from August 2025. Adjusted for seasonal variations, sales activity dropped by 0.7% from July 2026.
CREA’s senior economist, Shaun Cathcart, highlighted concerns over rising inflation and the potential for interest rate hikes, suggesting these factors may dampen sales activity due to the weakened economic landscape. The national average selling price for homes in August stood at $668,219, marking a 0.6% increase year-over-year.
Additionally, CREA noted a 3.3% month-over-month rise in new listings in August, breaking a three-month streak of declines earlier in the summer. These new developments come amidst a shifting economic outlook that could influence the real estate market in the coming months.