August home sales down 6.9% as economic headwinds threaten market momentum: CREA
By Sammy Hudes
The organization said home sales last month totalled 37,504, down 6.9% from August 2025.
On a seasonally adjusted basis, activity fell 0.7% compared with July of this year.
Overall, sales activity and price trends were largely unchanged for a fourth consecutive month, CREA senior economist Shaun Cathcart said in a news release.
“What has changed is the broader economic environment, with the Bank of Canada recently warning of rising inflation risks, along with doubts about the durability of recent economic growth,” he said.
“For borrowers, fixed mortgage rates have already increased on higher bond yields. Meanwhile, on the variable rate side, a rate hike is not only back on the table for this year but already priced in by markets. This fresh round of incoming headwinds is expected to dampen the prospects for further housing market momentum heading into 2027.”
The national average sale price of a home sold in August was $668,219, up 0.6% on a year-over-year basis.
CREA’s home price index, which aims to represent the sale of typical homes, was stable between July and August. The index was down three per cent on a year-over-year basis.
BMO senior economist Robert Kavcic said the figures describe a “soft” market by historical standards but “not completely tapped out.”
“Of course, it really depends on what regional market you’re in,” he said in a note, pointing out Canada’s largest markets — southern Ontario and much of B.C. — are still lagging.
“All in, this is still a very stable/flat/subdued market at the national level.”
CREA said new listings in August were up 3.3% month-over-month, ending a streak of three straight declines earlier in the summer.
There were just under 200,000 properties listed for sale across Canada at the end of August, up 1.4% from a year earlier and in line with the long-term average for that time of year.
The association said the uptick in inventory was broad based across Canada’s largest markets and most apparent toward the end of the month, suggesting sellers hoped to get an early start to the fall market.
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Last modified: September 15, 2026
