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

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

Toronto slows, however different main markets drive beneficial properties

Not like in current months when beneficial properties had been led overwhelmingly by the Higher 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 greater gross sales in Montreal, Higher Vancouver and Ottawa.

CREA senior economist Shaun Cathcart mentioned the upward pattern in exercise might speed up this fall because the season often brings a surge of latest provide. “A part of what drives gross sales at totally different factors within the 12 months is the provision of a whole lot of contemporary property listings for patrons to purchase. For the autumn market, that all the time occurs proper at first 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’s the potential that gross sales might 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 fee reduce by the Financial institution of Canada.”

The central financial institution is about to announce its newest rate of interest determination on Wednesday. Monetary markets count on the Financial institution of Canada to chop its coverage fee 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 because of 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 struggle.

“We had been after all affected by tariffs. Individuals simply develop into unsure and while you’re unsure you don’t make a giant buy, so we positively anticipated a busier spring than we obtained,” mentioned Honsberger. “However at this level within the 12 months given all the pieces that’s gone on, to be barely forward of the place we had been this time final 12 months when it comes to the variety of trades, I feel we’ll all take it. Hopefully we’ll proceed to construct momentum into subsequent 12 months as individuals get increasingly more comfy with the geopolitical surroundings.”

Canada’s common dwelling 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 properties, ticked 0.1% decrease between July and August 2025.

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

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Honsberger mentioned regardless of renewed demand, it’s vital 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 little bit 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’s best to count on some stage of exercise, and it’s best to most likely count on to promote it in an affordable period of time.”

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