The Canadian Real Estate Association has reported the highest number of home sales for August in four years, with a 1.9% increase compared to the same period last year. Total home sales reached 40,257 across the country last month, up from 39,522 in August 2024. This marks the fifth consecutive month of growth, with a 1.1% increase in sales compared to the previous month. Since March, transactions have escalated by 12.5%.
While Greater Toronto Area sales saw a slight decline in August, this was offset by increased sales in Montreal, Greater Vancouver, and Ottawa. CREA’s senior economist, Shaun Cathcart, anticipates a further uptick in activity this fall, attributing it to the seasonal influx of new property listings available for buyers. Cathcart noted that historically, the fall market experiences a surge in sales at the beginning of September, and this year appears to follow suit.
Looking ahead, Cathcart suggested that an interest rate cut by the Bank of Canada in September could potentially draw more buyers into the market. The central bank is expected to announce its latest interest rate decision soon, with speculation of a quarter-point reduction to 2.5%, following three consecutive holds.
CREA reported a 2.6% month-over-month increase in new listings, bringing the total number of properties listed for sale in Canada to 195,453 by the end of August, an 8.8% rise from the previous year. The average national sale price of a home in August stood at $664,078, reflecting a 1.8% increase year-over-year. Additionally, CREA’s home price index, representing typical home sales, experienced a marginal 0.1% decrease between July and August 2025.
Describing the housing market as “very balanced” overall in August, Robert Kavcic, senior economist at BMO, highlighted regional and segment variations. Kavcic noted that sales are approaching long-term norms at the national level, inventory levels are elevated without saturating the market, and prices have remained relatively stable.