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Economic News

Canada: Housing Market Momentum Stalled in August

September 15, 2026
Kari Norman
Senior Economist

Highlights

  • Existing home sales in Canada fell 0.7% m/m in August on a seasonally adjusted (sa) basis. The average national sale price rose 0.7% m/m (sa), while the benchmark price was essentially unchanged. Both measures remain well below their 2022 peaks. Table 1 summarizes key housing market indicators.
  • Based on today’s data releases, our Q3 real GDP growth tracking is in the range of 0.5% to 1.0% annualized, weaker than in the Bank of Canada’s latest Monetary Policy Report External link..

Comments

Seasonally adjusted home sales fell 0.7% m/m in August, ending a run of four consecutive monthly gains. Meanwhile, new listings increased 3.3%, widening the gap between demand and supply (graph 1). Inventory held steady at 4.8 months. Although elevated compared to recent years, it remains within the longer-term range of roughly 4.5 to 6.5 months for this time of year. The national sales-to-new-listings ratio stayed within balanced market territory at 49.1%, down from 51.1% in July. The average sale price rose a modest 0.7% m/m in August, while the benchmark price was essentially unchanged. 

Regional conditions remained uneven. In Quebec City, seasonally adjusted sales rebounded strongly in August, reversing July’s decline, while year-to-date average price growth has outpaced other major markets. In Toronto, sales edged lower as new listings increased, pushing the region back into buyer’s market territory (graph 2). Vancouver, meanwhile, posted surprisingly strong results, with sales growth outpacing gains in new listings.

Implications

The housing market appeared to be turning a corner in late spring and early summer. Seasonally adjusted sales reached their highest level of the year in July, while average prices had begun to trend modestly higher. However, that momentum appears to have faded. On a non-seasonally adjusted basis, August 2026 sales were the weakest for the month since 2012.

Rising bond yields have pushed 5-year fixed mortgage rates External link. higher, reducing affordability for some prospective buyers. At the same time, escalating trade tensions with the US External link. are weighing on consumer confidence, prompting some households to postpone major purchasing decisions.

NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.