Home sales across Canada declined 6.9% in August as demand in most markets remains weak.
The Canadian Real Estate Association (CREA) said that home sales nationwide are being challenged by several economic headwinds, which is draining momentum in the housing sector.
Home sales throughout Canada totalled 37,504 in August, down nearly 7% from August 2025.
On a seasonally adjusted basis, sales dropped 0.7% compared with July of this year.
In a statement, CREA said that rising inflation risks and the possibility of interest rate increases have weakened Canada’s economy and hurt sales activity.
Rising economic uncertainty from U.S. tariffs imposed on Canadian goods has also contributed to a slowdown in housing sales activity.
The national average sale price of a home in August was $668,219, up 0.6% from a year ago.
New listings in August rose 3.3% month-over-month, ending a streak of three consecutive monthly declines seen earlier in the summer.
The Bank of Canada recently chose to leave its trendsetting overnight interest rate unchanged at 2.25%.
The central bank has held interest rates steady for seven consecutive policy meetings as it assesses the impacts of volatile energy prices and U.S. tariffs on the Canadian economy.
Interest rates set by the Bank of Canada impact the mortgage rates consumers pay on home loans and can influence housing sales.
