August home sales down 6.9% as economic headwinds threaten market momentum: CREA
Canadian home sales in August decreased by 6.9% year-over-year and 0.7% month-over-month, according to the Canadian Real Estate Association (CREA). This decline is attributed to economic headwinds such as rising inflation risks and potential interest rate hikes, despite a slight increase in new listings.
Why it matters
The decline in home sales and the economic factors influencing it indicate a cooling housing market in Canada, which has significant implications for homeowners, potential buyers, and the broader Canadian economy.
The organization says home sales last month totalled 37,504, down 6.9 per cent from August 2025.
On a seasonally adjusted basis, activity fell 0.7 per cent compared with July of this year.
Shaun Cathcart, CREA’s senior economist, says rising inflation risks and the possibility of interest rate hikes have weakened the economic environment, which could hurt sales activity.
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