Canadian home sales edged down 0.7% month-over-month in August 2026, according to the Canadian Real Estate Association (CREA), marking the fourth straight month where sales activity and prices have hardly budged.
Measured against a year earlier, actual (not seasonally adjusted) sales volumes were down 6.9%.
"Sales activity and price trends were largely unchanged for a fourth consecutive month in August," said Shaun Cathcart, CREA's Senior Economist. "What has changed is the broader economic environment, with the Bank of Canada recently warning of rising inflation risks, along with doubts about the durability of recent economic growth. For borrowers, fixed mortgage rates have already increased on higher bond yields. Meanwhile, on the variable rate side, a rate hike is not only back on the table for this year but already priced in by markets. This fresh round of incoming headwinds is expected to dampen the prospects for further housing market momentum heading into 2027."
New listings moved the other direction, up 3.3% month-over-month after three consecutive monthly drops. That extra supply, paired with the slight pullback in sales, pulled the sales-to-new-listings ratio down to 49.1%, from 51.1% in July — below CREA's long-term average of 54.7% for that measure.
"The noticeable increase in new supply in August was both broad based across all the largest markets and most apparent towards the end of the month. This suggests sellers were looking to get an early start to the fall market, particularly given how late Labour Day was this year," said Garry Bhaura, CREA Chair. "For buyers, it will mean the usual seasonal burst of new properties to choose from, but at the same time they also have to contend with a fresh round of economic uncertainty. If you're thinking about buying or selling a property in this evolving market, get in touch with a REALTOR® in your area today."
Active listings sat just under 200,000 at the end of August, tracking close to the seasonal norm and running 1.4% ahead of last year's level. Supply has been essentially flat since spring 2025.
Months of inventory held at 4.8 for a fourth straight month, a touch under the five-month long-term average. On CREA's scale — one standard deviation either side of that average — anything under 3.6 months counts as a seller's market, and anything over 6.4 as a buyer's market.
The National Composite MLS® Home Price Index was flat month-over-month, extending a run of stability that's held since spring — the calmest stretch since 2024, when the index didn't move all year. Compared with August 2025, the non-seasonally adjusted version of the index was down 3% — the smallest year-over-year drop since October 2025, continuing a narrowing trend that's held since January.
The non-seasonally adjusted national average home price came in at $668,219 for August, up 0.6% year-over-year.
