August home sales down 6.9% as economic headwinds threaten market momentum: CREA

The Canadian Real Estate Association (CREA) reported a 6.9% decline in August home sales compared to the previous year, citing economic headwinds that could hinder market momentum throughout the year. August 2025 saw 37,504 homes sold, a 6.9% drop from August 2024. Seasonally adjusted figures show a 0.7% decrease from July's activity.

Shaun Cathcart, CREA's senior economist, attributes the slowdown to rising inflation and the potential for interest rate hikes, which have weakened the economic environment. Despite the decline in total sales, the national average sale price for homes remained steady at $668,219, up 0.6% from the same period in 2024. New listings increased by 3.3% month-over-month, marking a break from three consecutive declines earlier in the summer.