Canada’s housing market is showing signs of strain as economic headwinds threaten to derail momentum heading into the fall season. According to the Canadian Real Estate Association, home sales totaled 37,504 units in August 2026, representing a 6.9% decline compared to the same month last year.
While the national average sale price edged up slightly to $668,219 (up 0.6% year-over-year), the overall decline in transaction volume signals growing buyer hesitation. On a seasonally adjusted basis, activity fell 0.7% from July, suggesting the summer slowdown may persist.
Shaun Cathcart, CREA’s senior economist, attributes the weakness to rising inflation risks and the possibility of looming interest rate hikes. For GTA buyers and sellers, this cooling period presents both challenges and opportunities depending on your position in the market.
One bright spot: new listings jumped 3.3% month-over-month in August, ending a three-month decline. This increased inventory could benefit buyers negotiating power in the coming months.
Read the full report to understand what these trends mean for your real estate decisions.
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