Canadian Home Sales Tick Higher in August

National home sales recorded their best August in four years.

The number of properties that changed hands came in 1.9 per cent above August 2024, reports the Canadian Real Estate Association (CREA).

This marked the fifth straight month of increase in activity, making for a cumulative 12.5 per cent increase since March.

Unlike in recent months, when gains were led overwhelmingly by the Greater Toronto Area (GTA), sales in the GTA were down slightly in August, but this was more than offset by higher sales in Montreal, Greater Vancouver and Ottawa.

“Activity has continued to gradually pick up steam over the last five months, but the experience from a year ago suggests that trend could accelerate this fall,” said CREA senior economist Shaun Cathcart. “Part of what drives sales at different points in the year is the availability of a lot of fresh property listings for buyers to buy. For the fall market, that always happens right at the beginning of September. There is the potential that sales could really pick up in the next month or so depending on how many buyers are drawn off the sidelines, particularly if we see a rate cut by the Bank of Canada.”

On Sept. 17, the country’s central bank announced it was lowering its overnight policy rate by 25 basis points to 2.5 per cent, for the first time since March. The bank cited trade disruptions, U.S. tariffs impact and slow global economic growth as reasons behind the decision, while maintaining confidence in Canada’s resilience as it navigates a shifting global economic landscape.

Bank of Canada Governor Tiff Macklem pointed to consumption and housing activity both growing at a healthy pace and emphasized that despite a recent rise, Canada’s inflation remains close to the bank’s two per cent target.

New housing supply rose 2.6 per cent month-over-month in August, with new listings outpacing the increase in sales. There were 195,453 properties listed for sale on all Canadian MLS systems at the end of the month, up 8.8 per cent from a year earlier but right in line with the long-term average for the time of year.

There were 4.4 months of inventory on a national basis at the end of August — the lowest level since January.

The average home price was $664,078, up 1.8 per cent year-over-year.

The non-seasonally adjusted national composite MLS home price index was down 3.4 per cent compared to August 2024. Based on the extent to which prices fell off beginning in fall 2024, it is expected that year-over-year declines will continue to shrink in the months ahead.