In August 2025, home sales in Canada increased by 1.1% from the previous month, marking the best August performance since 2021. This growth extended a five-month upward trend, totaling a 12.5% increase since March. While sales in one major region dropped slightly, gains in other key markets more than offset the decline, contributing to the overall national increase.

The rise in sales was largely driven by an influx of new listings, a common trend at the start of fall. With many buyers returning to the market and potentially benefiting from favorable interest rates, further growth in sales is expected in the coming months.

National home sales were up 1.1% month-over-month, with a 1.9% increase compared to August 2024. New listings also grew by 2.6%, while home prices saw minimal change, with the HPI down 0.1% month-over-month but up 1.8% year-over-year. The national average sale price reached $664,078, reflecting a 1.8% rise from the previous year.

Despite an increase in new listings, the sales-to-new listings ratio dropped slightly to 51.2% in August, signaling a shift toward a more balanced market. The total number of properties listed was up 8.8% from a year ago, aligning with long-term averages.

Inventory levels at the end of August stood at 4.4 months, slightly below the long-term average of five months. Home prices are expected to continue stabilizing, with year-over-year declines shrinking in the months ahead.