In August, the Canadian Real Estate Association reported a decline in home sales from the previous year amidst ongoing economic challenges that may impact the housing market in the coming months. Total home sales for the month reached 37,504, marking a 6.9% drop compared to August 2025. Adjusted for seasonal variations, sales activity decreased by 0.7% compared to July 2026.
CREA’s senior economist, Shaun Cathcart, noted that increasing inflation risks and the potential for interest rate hikes have contributed to a less favorable economic environment, potentially impacting sales. The national average selling price of homes in August was $668,219, showing a modest 0.6% increase year-over-year.
Furthermore, CREA highlighted that new listings in August saw a 3.3% increase from the previous month, reversing a trend of three consecutive declines earlier in the summer. These fluctuations indicate a shifting landscape in the Canadian real estate market as external factors continue to influence buying and selling trends.