Canada’s housing market kept its recovery streak alive in August 2025. Buyers and sellers continued to return, with 40,257 homes changing hands—a 1.9% increase from last year. It marked the fifth month in a row of growth, pushing national sales activity up 12.5% since March and reinforcing the sense that the market is steadily finding its balance.
While the Greater Toronto Area posted a modest decline, momentum was driven by stronger results in Montreal, Greater Vancouver, and Ottawa, signaling a shift in leadership away from Canada’s largest market. Sales activity continued its steady climb, new listings gave buyers more options, and prices held firm after earlier declines. All signs point to a housing market finding its rhythm again, easing the uncertainty that’s defined the past few years for buyers and sellers alike.
New Listings Expand Buyer Choice
Housing supply eased in August as seasonally-adjusted new listings increased 2.6% to 79,527. Because listings fell faster than sales, the sales-to-new listings ratio edged down slightly to 51.2% from 52% in July. This was the first decline since March but still comfortably within the balanced range of 45% to 65%, and close to the long-term average of 54.9%.
At month’s end, there were 195,453 active listings across Canadian MLS Systems, an 8.8% increase from a year earlier, aligning with typical seasonal levels. Regionally, the strongest supply growth came from Trois-Rivières CMA (32.7%), Hamilton-Burlington (20%), Montreal CMA (17.8%), and Saguenay (16.8%). On the other hand, Sherbrooke CMA saw an 11.9% decline, while several Prairie markets also posted decreases, highlighting uneven inventory growth across the country.
Fraser Valley Market Loses Heat
National sales growth hid sharp differences across regions. Fraser Valley saw the steepest decline in August, with sales dropping 13.% year-over-year, followed by Calgary (-11.7%) and Regina (-5.9%). Meanwhile, other markets surged. Hamilton led the gains with a 21.5% increase, signaling renewed buyer interest in Southern Ontario, while Saint John rose 13.7%, highlighting the strength of Atlantic Canada’s more affordable housing markets. These contrasting results show that affordability and supply continue to be the main forces shaping outcomes across the country.
Prices Hold Steady as Market Firms
Prices stabilized further in August, signaling firmer conditions. The MLS Home Price Index (HPI) slipped just 0.1% month-over-month and was 3.4% below year-ago levels, though annual declines have narrowed steadily since the first quarter. Meanwhile, the national average sale price rose 1.8% year-over-year to $664,078. Inventory also tightened slightly, with 4.4 months of supply, the lowest since January and just below the long-term average of five months. These figures suggest a gradual firming in market conditions without triggering the rapid price gains of past cycles.
Momentum Builds Into Fall
Looking ahead, market momentum could strengthen further. CREA’s Senior Economist Shaun Cathcart noted, “Activity has continued to gradually pick up steam over the last five months, but the experience from a year ago suggests that trend could accelerate this fall.” Early September traditionally brings a surge of new listings, and this year followed that trend with a wave of properties hitting the market after Labour Day. If combined with a potential Bank of Canada rate cut, this influx of supply could draw more buyers back into the market, setting up a busier close to 2025.
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