Wednesday, August 27, 2025

Canadian Home Sales Dip in August as Recent Rate Hike Spikes Affordability Concerns

Canadian home sales slumped in August as the Bank of Canada’s recent rate hike heightened affordability concerns.

According to data from the Canadian Real Estate Association (CREA), national sales dipped by 4.1% from July, but were up by 5.3% compared to the same period one year ago. Interestingly, newly listed properties showed a minor increase of 0.8% over the previous month.

Monthly home sales (CNW Group/Canadian Real Estate Association)

This decline in sales was prominently influenced by declines in regions such as Greater Vancouver, Montreal, and Ottawa. By August’s end, the average sale price of homes was marked at $650,140— a 2.1% rise from the previous year.

“August was the first full month of housing data following the Bank of Canada’s July rate hike, so a dip in activity was expected,” said CREA senior economist Shaun Cathcart. “The demand is obviously still there, and it will be back, but as the housing affordability crisis re-emerges as a top policy issue, for now, the slowdown on the buyer side should help keep a lid on prices.”

Despite starting the year at a 20-year low, new listings for 2023 are now nearing average figures, having gained over 24% from March to July. Meanwhile, CREA reported there about 3.4 months of inventory across Canada in August, up from 3.2 months in July.

Information for this story was found via CREA. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Nord Precious Metals Identifies 29 Veins At Castle East Following 3D Modeling

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

Related News

Home Sales in Canada’s Hottest Real Estate Market Crash 47% in July

Canada’s largest real estate market does not appear to be having an energetic summer this...

Friday, August 5, 2022, 02:20:00 PM

Canadian Housing Prices To Fall 2.2% This Fall — Survey Report

In the last months of the year, the national average residential sale price in the...

Thursday, October 13, 2022, 11:17:55 AM

US Mortgage Demand Drops 8.1% In A Week: “Biggest Decline In Almost A Year”

It seems rising mortgage rates are starting to take a toll on demand. Mortgage applications...

Wednesday, February 9, 2022, 11:22:00 AM

Golds Price Is Only Loosely Linked To The Fed Funds Rate

Many investors in the equity, bond and commodities markets expect the U.S. Federal Reserve to...

Sunday, September 4, 2022, 09:00:00 AM

30% of Americans Failed to Make June Housing Payments

Although there are some indicators that the US economy is beginning to show initial signs...

Tuesday, June 23, 2020, 04:22:00 PM