Canada’s real estate market finished August without any noticeable pickup. Home sales fell by nearly 7% compared with August last year, prices barely changed, and economic uncertainty is pushing buyers into a wait-and-see stance. At the same time, supply is gradually rising: sellers are bringing more and more properties back to the market.
According to the Canadian Real Estate Association (ACI), 37,504 transactions were completed nationwide in August, which is 6.9% less than a year earlier.
After seasonal adjustment, market activity fell another 0.7% over the month compared with July.
In brief
- 37,504 real estate properties were sold in August.
- Sales fell 6.9% year over year.
- Compared with July, activity decreased by 0.7% after seasonal adjustment.
- $668,219, up 0.6% year over year.
- The MLS Price Index fell 3% year over year and was unchanged compared with July.
- New listings rose 3.3% month over month.
- 200,000 properties — 1.4% more than a year ago.
What’s happening in the market?
The main feature of Canada’s current market is the absence of sharp moves.
According to ACI Chief Economist Shaun Cathcart, for the fourth month in a row, sales volumes and overall price trends have remained stable.
What has changed most is the broader economic backdrop.
The Bank of Canada is warning about new inflation risks, and the durability of recent economic growth remains uncertain. This is already being reflected in the mortgage market.
Fixed mortgage rates are rising in step with higher bond yields. At the same time, financial markets are once again pricing in the possibility of increases in variable rates later this year.
As a result, potential buyers are in no rush to make decisions.
Why are Canadians postponing a purchase?
The Halifax market describes the situation well.
Royal LePage Atlantic realtor Scott Moulton says the summer in his region was “very quiet.” According to him, buyers remain confident in the local market and in real estate as an investment, but prefer to wait.
Among the reasons he cites are trade tariffs and uncertainty in the labour market.
Buyers’ logic right now is fairly simple: if there’s no need to buy today, you can wait and see how economic events unfold.
So this is less about a mass rejection of real estate and more about a pause.
What’s happening with prices?
The average price of a property sold in August was:
$668,219.
That is only 0.6% higher than a year ago.
Meanwhile, the more indicative MLS Price Index, which reflects typical properties, was virtually unchanged over the month.
On a year-over-year basis, it fell by 3%.
In other words, Canada’s market is not yet showing a new significant surge in prices.
Why is the market being called stable?
Bank of Montreal Chief Economist Robert Kavcic describes the situation as sluggish by historical standards, but not yet as one that has fully exhausted its potential for a rebound.
In his assessment, Canada’s market remained stable all summer, and at the national level there is still a relative balance between supply and demand.
At the same time, the largest markets — southern Ontario and much of British Columbia — continue to lag.
Declining sales are being observed in most regions of the country.
Another feature of the current market is that the previous speculative activity has virtually disappeared. Investors have become far less visible, prices are under pressure, and transaction volumes remain low and relatively stable.
More sellers are coming back
Against this backdrop, another important trend is emerging.
In August, the number of new listings rose by 3.3% compared with July.
This is especially notable after three consecutive months in which the number of new listings had been declining.
By the end of August, just under 200,000 properties were on the Canadian market for sale.
That is 1.4% more than a year ago.
Moreover, supply growth is being seen in virtually all of the country’s largest markets.
In ACI’s view, the particularly noticeable increase in inventory at the end of August may indicate that sellers decided not to wait for fall and brought their properties to market ahead of time.
What will happen in the fall?
For now, the market is entering the fall season without an obvious impulse for a sharp recovery.
On the one hand, the growing number of homes listed for sale expands choice for buyers.
On the other hand, high borrowing costs and uncertainty around the economy, trade tariffs, and employment are making potential buyers cautious.
That is why experts do not expect a sharp jump in activity.
Frequently asked questions
How much did home sales fall in Canada?
In August, 37,504 transactions were completed — 6.9% fewer than in August 2025.
Are prices rising or falling?
The average transaction price rose 0.6% year over year to $668,219. However, the MLS Index fell 3% year over year.
Is there more real estate on the market?
Yes. New listings rose 3.3% over the month, and the total number of properties for sale was 1.4% higher than a year earlier.
Why are buyers waiting?
Factors cited include economic uncertainty, tariffs, labour-market conditions, and changes in mortgage rates.
Can we talk about a new market crash?
The data presented do not show that. Sales are below last year’s level, but prices and supply remain relatively stable, and experts describe the market as sluggish and balanced rather than in a state of sharp collapse.
Unique commentary
Canada’s housing market right now resembles a market that has stopped before the next turn.
Buyers haven’t disappeared — they’re just not rushing. Sellers, by contrast, are starting to return and list more properties. Prices are no longer rising at the previous pace, but there is still no sharp nationwide drop so far.
Especially telling is the difference between two August figures: sales were down 6.9%, while new listings were up 3.3%.
This means the market is gradually becoming more comfortable for those who are ready to wait and choose. But the main question remains open: will this pause become the start of a gradual recovery, or will economic uncertainty continue to keep Canadian real estate in a holding pattern.
