Canadian home sales saw a 1.3% month-over-month increase in August, according to data from the Canadian Real Estate Association (CREA), though activity remained 2.1% lower compared to the same period last year. The slight uptick in sales followed the Bank of Canada’s second interest rate cut in late July, which provided a modest boost to the housing market.
Despite this increase, CREA senior economist Shaun Cathcart noted that the overall market remains in a holding pattern as prospective buyers wait for further rate reductions to improve affordability. Cathcart explained that while there are early signs of renewed interest in the market, many buyers are still holding off for better conditions, as prices remain stable across much of the country.
The number of newly listed properties rose by 1.1% in August, and the national average home price was $649,100, largely unchanged from the same time last year. Bank of Montreal senior economist Robert Kavcic also pointed out that while sales volumes and new listings are stable, further rate cuts are likely needed before the market sees a more significant bounce in prices or activity.
