Canadian house gross sales hit four-year August excessive as fall market heats up

The affiliation mentioned there have been 40,257 house gross sales throughout the nation final month, up 1.9% from 39,522 in August 2024. Residence gross sales additionally rose 1.1% on a month-over-month foundation, marking the fifth straight month-to-month improve. Transactions have risen a cumulative 12.5% since March.

Toronto slows, however different main markets drive good points

In contrast to in latest months when good points had been led overwhelmingly by the Larger Toronto Space, gross sales in that area had been down barely month-over-month in August. However the affiliation mentioned this was greater than offset by increased gross sales in Montreal, Larger Vancouver and Ottawa.

CREA senior economist Shaun Cathcart mentioned the upward pattern in exercise may speed up this fall because the season normally brings a surge of recent provide. “A part of what drives gross sales at completely different factors within the 12 months is the supply of numerous recent property listings for patrons to purchase. For the autumn market, that at all times occurs proper initially of September, and this 12 months was no exception,” he mentioned in a press launch. “If final 12 months is any sort of information, then there may be the potential that gross sales may actually decide up within the subsequent month or so relying on what number of patrons are drawn off the sidelines, significantly if we see a September charge minimize by the Financial institution of Canada.”

The central financial institution is ready to announce its newest rate of interest resolution on Wednesday. Monetary markets count on the Financial institution of Canada to chop its coverage charge by 1 / 4 level to 2.5%, ending a streak of three consecutive holds.

Atlantic gross sales barely forward of final 12 months regardless of challenges

There’s been “muted momentum” as of late in Atlantic Canada, mentioned Halifax-based dealer Matt Honsberger, who famous the area skilled a downturn earlier within the 12 months attributable to uncertainty associated to tariffs. Honsberger, president and proprietor of Royal LePage Atlantic, referred to the Maritime housing market as a “kiddie-coaster” in comparison with the bigger swings of Toronto’s roller-coaster market. He mentioned Atlantic Canada has seen “a lot much less important” ups and downs from the U.S.-Canada commerce warfare.

“We had been after all affected by tariffs. Folks simply develop into unsure and if you’re unsure you don’t make an enormous buy, so we undoubtedly anticipated a busier spring than we received,” mentioned Honsberger. “However at this level within the 12 months given the whole lot that’s gone on, to be barely forward of the place we had been this time final 12 months by way of the variety of trades, I feel we’ll all take it. Hopefully we’ll proceed to construct momentum into subsequent 12 months as folks get increasingly more snug with the geopolitical atmosphere.”

Canada’s common house value up 1.8% year-over-year

CREA mentioned new listings had been up 2.6% month-over-month nationally in August. There have been 195,453 properties listed on the market throughout Canada on the finish of August, up 8.8% from a 12 months earlier. The precise nationwide common sale value of a house bought in August was $664,078, up 1.8% from a 12 months in the past. CREA’s own residence value index, which goals to characterize the sale of typical houses, ticked 0.1% decrease between July and August 2025.

TD economist Rishi Sondhi mentioned enhancing demand ought to contribute to the continued development of common house costs. He mentioned provide and demand circumstances are nonetheless “comparatively tight” throughout a number of provinces. “In distinction, market balances favour patrons in B.C. and Ontario,” Sondhi mentioned in a notice. “Nevertheless, common house costs in these markets have been lifted by the outperformance of costlier housing in latest months, and we assume this pattern will proceed in coming months.”

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Honsberger mentioned regardless of renewed demand, it’s necessary that sellers value their properties appropriately because the market isn’t but seeing all-out bidding wars.

“What we’re listening to from shoppers is that sellers nonetheless wish to probably overprice their property a bit of bit and patrons are simply saying, ‘I’m not . I’ll simply wait it out,’” he mentioned. “It’s nonetheless a wholesome market … For those who put it on on the proper value now, it is best to count on some stage of exercise, and it is best to in all probability count on to promote it in an affordable period of time.”

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