National home sales, inventory and prices were all little changed in August, holding to the pattern set in the spring, according to the latest report from the Canadian Real Estate Association (CREA). The month’s notable movement came from new supply, which rebounded after three consecutive monthly declines.

Sales were flat while new listings rebounded

The number of homes sold over Canadian MLS® Systems decreased 0.7% from July to August. Monthly activity has remained largely unchanged since May.

New listings rose 3.3% month over month, reversing three straight declines earlier in the summer. The increase in new supply, combined with the small decline in sales, eased the national sales-to-new-listings ratio to 49.1% in August from 51.1% in July. The long-term average for the measure is 54.7%, and readings roughly between 45% and 65% are generally consistent with balanced housing market conditions.

“Sales activity and price trends were largely unchanged for a fourth consecutive month in August,” said Shaun Cathcart, CREA’s Senior Economist, in the report. “What has changed is the broader economic environment, with the Bank of Canada recently warning of rising inflation risks, along with doubts about the durability of recent economic growth. For borrowers, fixed mortgage rates have already increased on higher bond yields. Meanwhile, on the variable rate side, a rate hike is not only back on the table for this year but already priced in by markets. This fresh round of incoming headwinds is expected to dampen the prospects for further housing market momentum heading into 2027.”

Inventory remained in line with historical norms

There were just under 200,000 properties listed for sale across Canadian MLS® Systems at the end of August, in line with the historical average for this time of year and 1.4% above the same point last year. 

Nationally, there were 4.8 months of inventory at the end of August, unchanged for a fourth consecutive month and slightly below the long-term average of five months. Based on one standard deviation above and below that average, a seller’s market would be below 3.6 months of inventory, while a buyer’s market would be above 6.4 months.

“The noticeable increase in new supply in August was both broad based across all the largest markets and most apparent towards the end of the month. This suggests sellers were looking to get an early start to the fall market, particularly given how late Labour Day was this year,” said Garry Bhaura, CREA Chair, in the report. “For buyers, it will mean the usual seasonal burst of new properties to choose from, but at the same time they also have to contend with a fresh round of economic uncertainty.”

Home prices held flat for a fourth straight month

The National Composite MLS® Home Price Index (HPI) was unchanged from July to August. Prices have remained largely unchanged month to month since the spring, the longest period of price stability since 2024, when the measure was flat throughout the year.

On a year-over-year basis, the non-seasonally adjusted index was down 3% compared to August 2025. Annual declines have been narrowing since January, and the August reading marked the smallest decrease since October 2025.

The non-seasonally adjusted national average home price was $668,219 in August 2026, up 0.6% from the same month last year.

What it means for buyers and sellers this fall

Buyers entering the fall market have more properties to choose from and less pressure to act quickly than they would in tighter conditions. Sellers who listed in late August are positioned ahead of the usual autumn increase in competition.