In August, the Canadian Real Estate Association reported a decrease in home sales compared to the previous year amid ongoing economic challenges that could impact the housing market’s growth for the rest of the year. Home sales for the month totaled 37,504, marking a 6.9% decline from August 2025. When adjusted for seasonal variations, sales activity dropped by 0.7% compared to July 2026.

CREA’s senior economist, Shaun Cathcart, highlighted concerns about rising inflation and potential interest rate hikes, suggesting a weakened economic landscape that may affect sales. The national average sale price of homes in August was $668,219, showing a modest 0.6% increase year-over-year.

Despite the overall slowdown, there was a 3.3% month-over-month rise in new listings in August, breaking a trend of three consecutive monthly declines earlier in the summer. This uptick in listings could provide some relief to the market as it navigates through the current economic uncertainties.