Canadian Home Sales Hit Four Year August High as Fall Heats Up

The Canadian Real Estate Association (CREA) reported the strongest August home sales in four years, a sign that the market may be heating up heading into the fall. Nationwide transactions reached 40,257 last month, an increase of 1.9% from 39,522 in August 2024. Sales also rose 1.1% from July, marking the fifth consecutive monthly gain and bringing cumulative growth since March to 12.5%.

Toronto slows, but other major markets drive gains

After several months where gains were concentrated in the Greater Toronto Area, the GTA showed a modest month-over-month decline in August. That softness was offset by stronger activity in other major markets, including Montreal, Greater Vancouver and Ottawa, which together supported overall national growth.

CREA senior economist Shaun Cathcart noted the seasonal dynamics that often shape the fall market. He explained that the beginning of September typically brings a wave of fresh listings, giving buyers more options and often lifting sales activity. Cathcart said that if historical patterns hold, the combination of renewed listings and any return of sidelined buyers could push sales higher in the coming weeks—especially if the Bank of Canada follows market expectations and eases policy rates soon.

The Bank of Canada is scheduled to announce its interest rate decision this week. Financial markets have been pricing in a quarter-point cut to the policy rate, to 2.5%, which would break a run of three consecutive decisions to hold rates steady. Such a move could influence buyer confidence and borrowing costs, and therefore plays a large role in near-term housing market sentiment.

Atlantic sales slightly ahead of last year despite challenges

Atlantic Canada has shown modest momentum recently, despite facing headwinds earlier in the year. Halifax-based broker Matt Honsberger, president and owner of Royal LePage Atlantic, described the regional market as more subdued compared with the large swings seen in Toronto. He pointed out that uncertainty stemming from tariff discussions weighed on activity earlier this year, tempering what had been expected to be a busier spring.

“Tariffs created uncertainty and when buyers are uncertain they often delay major purchases,” said Honsberger. He added that while the spring did not meet expectations, being slightly ahead of last year’s trade count at this point in the season is a positive sign. Honsberger expressed cautious optimism that momentum will continue to build as buyers and sellers gain confidence in the geopolitical and economic backdrop.

Canada’s average home price up 1.8% year-over-year

CREA reported a 2.6% month-over-month increase in new listings nationally for August. At the end of the month there were 195,453 properties listed for sale across Canada, up 8.8% from a year earlier. The actual national average sale price in August was $664,078, 1.8% higher than a year ago. CREA’s home price index (HPI), which aims to reflect the price movement of a typical home, registered a slight dip of 0.1% between July and August 2025, indicating mixed signals across different market segments.

TD economist Rishi Sondhi pointed to improving demand as a factor likely to support further increases in average home prices. He noted that supply and demand remain relatively tight in several provinces, even as market balances favor buyers in parts of British Columbia and Ontario. In those provinces, however, the average price has been pulled up by stronger sales of higher-priced properties, a trend Sondhi expects could persist in the near term.

Honsberger cautioned sellers about overpricing. Even with renewed buyer interest, he said the market is not broadly returning to aggressive bidding wars. Sellers who list at realistic prices should still expect activity and reasonable selling timelines, while those who aim for a higher opening price may find buyers willing to wait.

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