CREA: Canadian Home Sales Slip in August as Listings Rise and Economic Headwinds Grow

# What happened in August

Shaun Cathcart, CREA's senior economist, summarized the picture: "Sales activity and price trends were largely unchanged for a fourth consecutive month in August. 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."

# Supply and demand snapshot

# Regional patterns to watch

Southern Ontario: The region saw meaningful year-over-year declines in closed sales. Key figures include:

• Kitchener–Waterloo: sales down 11.9% year-over-year.
• Hamilton–Burlington: sales down 11.1% year-over-year.
• Niagara Region: sales down 3.7% year-over-year.
• Greater Toronto Region: sales down 2.1% year-over-year.

Quebec: New listings increased substantially year-over-year in several markets, though some are smaller CMAs. Highlights:

• Sherbrooke CMA: 366 new listings, up 56.4% year-over-year.
• Saguenay CMA: 235 new listings, up 37.4% year-over-year.
• Trois-Rivières CMA: 216 new listings, up 35% year-over-year.
• Quebec CMA: 1,155 new listings, up 26% year-over-year.
• Gatineau CMA: 933 new listings, up 24.9% year-over-year.
• Montréal CMA: 6,373 new listings, up 8.2% year-over-year.

Other larger markets saw year-over-year listing declines: Fraser Valley (down 18.3%), Hamilton–Burlington (down 12.9%), Niagara Region (down 15.6%), and the GTA (down 14.1%), with nearly 2,000 fewer listings in Toronto.

CREA Chair Garry Bhaura noted the month-over-month increase in supply was broad across large markets and concentrated toward month-end, suggesting sellers aimed to get an early start on the fall market given a late Labour Day.

# What this means for buyers and sellers

• Buyers: The SNLR still sits in balanced territory, but growing listings in some regions and economic pressure on mortgage rates could increase negotiating leverage if the trend continues.
• Sellers: Year-over-year listing declines in several large markets mean some sellers remain cautious. In places where listings have jumped, sellers may face longer marketing times or price adjustments.

# Bottom line

August's data show a modest pullback in sales alongside a rise in new supply. CREA frames the change as the start of a potential slowdown driven by shifting economic signals and mortgage-rate pressures. Markets will likely diverge regionally: some areas may tighten further, while others—especially parts of Quebec—are seeing more immediate increases in supply.