August brought another small but steady increase in national home sales, extending a rebound that’s been building momentum since the spring, according to the latest report from the Canadian Real Estate Association (CREA). With five straight months of price gains, housing activity is showing signs of sustained stability, even as regional trends shift and supply levels begin to balance out.
Monthly sales see a modest climb
Home sales across Canadian MLS® Systems edged up by 1.1% in August 2025, marking the fifth month in a row of rising activity. Since bottoming out in March, national sales have climbed by a cumulative 12.5%. It was the most active August in four years, signaling a market that continues to build momentum.
The Greater Toronto Area, the typical driver of national gains, saw a slight dip in sales in August. But that small decline was more than offset by stronger activity in other major markets, particularly Montreal, Greater Vancouver, and Ottawa.
“Activity has continued to gradually pick up steam over the last five months, but the experience from a year ago suggests that trend could accelerate this fall,” said Shaun Cathcart, CREA’s Senior Economist. “Part of what drives sales at different points in the year is the availability of a lot of fresh property listings for buyers to buy. For the fall market, that always happens right at the beginning of September, and this year was no exception. If last year is any kind of guide, then there is the potential that sales could really pick up in the next month or so depending on how many buyers are drawn off the sidelines, particularly if we see a September rate cut by the Bank of Canada.”
Inventory reaches a seasonal norm
There were 195,453 homes listed for sale across all Canadian MLS® Systems at the end of August, up 8.8% compared to the same time last year. This level of inventory is in line with what’s typical for late summer.
In August, the national months of inventory stood at 4.4, the lowest reading since January and just below the long-term average of five months. Markets with under 3.6 months of inventory are considered seller-friendly, while those above 6.4 months tend to favour buyers.
“August continued the trend of rising sales in many markets across the country, and while momentum slowed compared to July, much of that is simply a reflection of the time of year,” said Valérie Paquin, CREA Chair. “Now that we are on the other side of Labour Day, new listings are flooding onto the market.”
Sellers continued to return to the market in August, with new listings increasing by 2.6% month over month. Because listings outpaced the growth in sales, the national sales-to-new listings ratio eased for the first time since March, dipping to 51.2%, down slightly from 52% in July.
The long-term average for this ratio is 54.9%. A range between 45% and 65% is generally considered to reflect a balanced market, and August’s numbers fall comfortably within that zone.
Average price edges higher
The national average home price, not seasonally adjusted, came in at $664,078 in August 2025, up 1.8% from August 2024. This reflects modest annual growth as markets across the country continue to regain their footing.
The National Composite MLS® Home Price Index was nearly unchanged in August, edging down just 0.1% from July. After experiencing declines earlier in the year, national benchmark prices have been relatively flat since April, pointing to a period of price stability. Compared to a year earlier, the benchmark price was down 3.4%.
