Canada just experienced its busiest August for home
sales since 2021, marking the fifth consecutive month of increased property
purchases. According to the latest data from the Canadian Real Estate
Association (CREA), home sales are now up 12.5% cumulatively since March,
with Montreal, Greater Vancouver, and Ottawa leading the way last month.
“It’s roughly what we expected in terms of the
direction of sales this year, just maybe a little slower than anticipated,”
said CREA Senior Economist Shaun Cathcart in this month’s Housing Market
Report.
While the market is stabilizing, home sales could be
on the verge of a surge similar to last year. Let’s break down what’s
happening:
Canadian Real Estate at a Glance
·
National home sales
increased 1.1% in August compared to July.
·
Newly listed properties
rose 2.6% in August compared to July.
·
National average sale price
grew 1.8% to $664,078 in August 2025 compared to last year.
Are Canadian Home Sales About to Surge?
The housing market is shaking off a slow start to
2025. New listings increased, offering more choice for buyers, but because new
listings outpaced sales, the market tightened slightly. Keep in mind that real
estate is hyper-local—conditions in Toronto may differ from smaller markets
or other provinces.
At the end of August, total inventory stood at 195,453
properties, up 8.8% from last year, consistent with the long-term
average.
Valerie Paquin, Chair of CREA’s 2025-2026 Board of
Directors, noted:
“August continued the trend of rising sales in many
markets across the country. Momentum slowed compared to July, but that reflects
the season. Now that we’re past Labour Day, new listings are flooding the
market.”
Cathcart added that September data is already
showing promising trends:
“The recent burst of new listings is similar to last
year, and I’m confident buyers are ready. Activity could be even stronger this
fall.”
With interest rates now at 2.75%, down from
last year’s highs of 5%, first-time home buyers may find this a sweet spot
to enter the market.
Home Prices Across Canada
Nationally, the average price is up 1.8% from last
year. But real estate markets vary: prices in the Prairies or Atlantic Canada
may still have more room to grow, while Greater Toronto and Vancouver are
experiencing tighter inventory.
Regional Highlights:
·
Greater Toronto Area:
Sales slipped slightly, keeping price growth contained for now.
·
Greater Vancouver & Montreal:
Limited inventory is driving stronger activity, with prices likely to climb
sooner.
·
Ottawa: Sales picked
up, though price growth remains modest compared to 2021–2022 peaks.
·
Prairies & Atlantic Canada:
Conditions remain more balanced.
How Will the Build Canada Homes Initiative Affect
the Market?
The federal government recently launched the Build
Canada Homes Agency, a $13 billion initiative designed to increase
housing supply and ease affordability pressures. Initial plans include:
4,000 factory-built homes on federal land
A national rental protection fund
Funding for transitional and supportive housing
While the long-term effects are still unfolding,
experts agree that Canada faces a housing supply crisis, and any
measures to increase inventory could help stabilize prices.
If you’re considering buying this fall, the
combination of lower interest rates, increasing listings, and government
support for housing supply could make this a strategic time to enter the
market.
