Canadian Home Sales Plummet 6.9% in August Amid Economic Uncertainty

Canada's housing market continued to feel the pinch in August as home sales fell by 6.9% compared to the same month last year, according to the Canadian Real Estate Association (CREA). This decline was led by a nationwide total of 37,504 home sales, down from nearly 7% from August 2025.

The CREA attributed this decline to several economic headwinds, including rising inflation risks and the possibility of interest rate increases. The Bank of Canada's decision to leave its overnight interest rate unchanged at 2.25% has also had an impact on the market. This rate influences mortgage rates, which can affect housing sales.

New listings in August rose by 3.3% month-over-month, ending a streak of three consecutive monthly declines seen earlier in the summer. The national average sale price of a home was $668,219, up 0.6% from a year ago.