Canadian home sales slip 0.7% in August as rate-hike risk returns

The Canadian Real Estate Association published its national home sales statistics for August 2026 on 15 September.

The figures

• National home sales: down 0.7% month on month; monthly activity has been little changed since May
• Actual (not seasonally adjusted) sales: 6.9% below August 2025
• New listings: up 3.3% month on month, reversing three straight monthly declines
• MLS Home Price Index: unchanged on the month, down 3% year on year
• Average sale price (not seasonally adjusted): up 0.6% year on year
• Months of inventory: 4.8, unchanged for a fourth consecutive month and slightly below the long-run average of five months
• Sales-to-new-listings ratio: 49.1%, down from 51.1% in July; CREA's long-term average is 54.7%, with 45%–65% generally consistent with a balanced market

What CREA said

"Sales activity and price trends were largely unchanged for a fourth consecutive month in August," said CREA senior economist Shaun Cathcart, pointing to a broader shift: the Bank of Canada's recent warning about rising inflation risks (report), doubts about the durability of growth, and fixed mortgage rates that have already risen on higher bond yields. He added that "a rate hike is not only back on the table for this year but already priced in by markets."

CREA chair Garry Bhaura said the jump in new listings was broad-based and concentrated late in the month, as sellers looked to get ahead of the fall market.

Why it matters for the loonie

The Bank of Canada has held its policy rate at 2.25% since April, most recently on 2 September, while flagging that gasoline and diesel prices could keep inflation above target for longer (report). Canadian CPI held at 3.0% in August and the economy lost 42,000 jobs (reports, jobs). A housing market that's stalled rather than falling, combined with market pricing for a hike, adds another data point to that debate. Live prices: USD/CAD.