The Canadian Real Estate Association has reported the highest number of home sales in August in the past four years, with a 1.9% increase in residential property transactions compared to the previous year. Last month, there were 40,257 home sales nationwide, up from 39,522 in August 2024. Home sales also saw a 1.1% increase on a month-to-month basis, marking the fifth consecutive monthly rise and a total increase of 12.5% since March.
While Greater Toronto Area sales experienced a slight decline in August compared to the previous month, this was offset by increased sales in Montreal, Greater Vancouver, and Ottawa. Shaun Cathcart, a senior economist at CREA, mentioned that the trend in activity could gain momentum this fall with the usual surge of new property listings. He highlighted that the availability of fresh listings drives sales during different times of the year, particularly at the start of September.
The upcoming interest rate decision by the Bank of Canada, scheduled for Wednesday, is anticipated to involve a quarter-point rate cut to 2.5%, ending a sequence of three consecutive holds. CREA reported a 2.6% increase in new listings from the previous month, with a total of 195,453 properties listed for sale across Canada by the end of August, an 8.8% increase from the previous year.
The national average sale price of a home sold in August was $664,078, representing a 1.8% rise from the previous year. However, CREA’s home price index, which reflects typical home sales, decreased by 0.1% between July and August 2025. Robert Kavcic, senior economist at BMO, described Canada’s housing market in August as “very balanced,” noting regional and segment variations while emphasizing the steady return of sales to long-term norms, stable inventory levels, and flat prices.
