Canadian home sales edged down 0.7% month over month in August, according to the Canadian Real Estate Association (CREA) in a Tuesday note, extending a stretch of largely flat sales since May.
The softer activity comes amid growing economic uncertainty, as the Bank of Canada warns of rising inflation risks and economists question the sustainability of recent economic growth, said CREA.
Borrowing costs are also putting pressure on the housing market. Fixed mortgage rates have moved higher as bond yields rise, while financial markets are again factoring in the potential for a BoC rate hike before year-end, it added.
"This fresh round of incoming headwinds is expected to dampen the prospects for further housing market momentum heading into 2027," wrote CREA's Senior Economist Shaun Cathcart in the note.
On a year-over-year basis, actual home sales were down 6.9% in August, said CREA. Newly listed properties declined 3.3% from the previous month,
Home prices were also flat, with the Home Price Index (HPI) unchanged from July to August, extending the longest stretch of monthly price stability since 2024. It was down 3% annually.
The national average home price was CA$668,219 in August, up 0.6% from the same month last year.