Housing

Home sales slip 0.7% in August as new listings rebound and prices hold flat

CREA says national home sales edged down in August while new listings rose 3.3%, leaving a balanced market with prices down 3% from a year earlier.

By John Wilson · September 15, 2026

Canada's housing market stayed stuck in neutral through the end of summer. The Canadian Real Estate Association reported on Tuesday that national home sales fell 0.7% on a seasonally adjusted basis from July to August, while new listings jumped.

On an actual, not seasonally adjusted basis, 37,504 homes changed hands in August, 6.9% fewer than in August 2025. "Sales activity and price trends were largely unchanged for a fourth consecutive month in August," said CREA senior economist Shaun Cathcart.

The numbers

Just under 200,000 properties were listed for sale at the end of August, up 1.4% from a year earlier and in line with the long-term average, according to The Canadian Press.

Sales: -0.7% month over month; -6.9% year over year (actual)
New listings: +3.3% month over month, ending three straight monthly declines
Sales-to-new listings ratio: 49.1%, down from 51.1% in July (long-term average: 54.7%)
Months of inventory: 4.8, unchanged for a fourth month, slightly below the long-term average of five
MLS Home Price Index: unchanged from July, down 3% year over year
National average sale price: $668,219, up 0.6% year over year

What changed: the economy, not the market

CREA said the bigger shift was outside real estate. "What has changed is the broader economic environment," Cathcart said, pointing to the Bank of Canada's recent warnings about rising inflation risks and doubts about how durable the recent rebound in growth will be. He said this "fresh round of incoming headwinds" is expected to dampen the prospects for further housing momentum heading into 2027.

CREA chair Garry Bhaura said the increase in new supply in August was broad-based across all the largest markets.

A soft but functioning market

BMO economist Robert Kavcic described the market as "soft" by historical standards but "not completely tapped out." He wrote that conditions "remain balanced at the national level," and that the data point to "a market that is working to turn over the homes that need turning over, and not much more." Canada's largest markets, southern Ontario and much of British Columbia, continue to lag the rest of the country.

On the ground, Halifax agent Scott Moulton of Royal LePage Atlantic described a "very quiet" summer and said buyers are "patient," citing tariffs and job insecurity.

The risks

The main risk to the outlook is the economy. New U.S. tariffs and Canadian counter-measures, inflation sitting at 3% and the possibility that the Bank of Canada raises rates rather than cutting them all weigh on buyer confidence. A rise in listings without a matching rise in sales would tilt the market further toward buyers and could put more downward pressure on prices in the weakest regions.

What it means for an ordinary Canadian household

For buyers, a balanced market with 4.8 months of inventory generally means more choice and less pressure to waive conditions such as inspections or financing. Prices are lower than a year ago on the benchmark measure, but borrowing costs could rise, so it makes sense to get a mortgage pre-approval and test your budget against a higher rate.

For sellers, more competing listings mean pricing realistically matters. For homeowners who are not moving, flat prices mainly matter at renewal time or if you plan to borrow against your home. This is general information, not personalized advice.

Sources

General news and information, not individualized financial advice. Figures reflect the publication date.