The Canadian Real Estate Association has reported the highest number of home sales in August in four years, with a 1.9% increase in residential property transactions compared to the previous year. The total number of home sales across the country reached 40,257 last month, up from 39,522 in August 2024. Additionally, there was a 1.1% month-over-month increase in home sales, marking the fifth consecutive monthly rise, totaling a 12.5% increase since March.
While Greater Toronto Area sales experienced a slight decline in August compared to previous months, higher sales in Montreal, Greater Vancouver, and Ottawa more than compensated for this decrease. CREA’s senior economist, Shaun Cathcart, predicts that the upward trend in activity may accelerate this fall, driven by the usual surge in new property listings at the beginning of September.
With new listings increasing by 2.6% month-over-month and a total of 195,453 properties listed for sale in Canada by the end of August, there was an 8.8% rise from the previous year. The national average sale price of a home in August was $664,078, marking a 1.8% increase from the previous year. CREA’s home price index, reflecting typical home sales, showed a marginal 0.1% decrease between July and August 2025.
Economist Robert Kavcic from BMO described Canada’s housing market in August as “very balanced,” noting significant regional and segment variations. He highlighted that national sales are approaching long-term averages, inventory levels are elevated but not saturating the market, and prices are relatively stable. The Bank of Canada is expected to announce a potential interest rate cut in the coming days, which could further influence the housing market dynamics.
