The Canadian real estate market showed notable strength in August 2025, with home sales reaching levels not seen for that month in four years. This surge highlights a continuing recovery in residential transactions, offering opportunities for both buyers and sellers navigating the current landscape.

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Key Sales Figures and Trends

In August 2025, a total of 40,257 home sales were recorded nationwide, marking a 1.9 percent increase from the same period in 2024. This followed 39,522 sales in August of the previous year. On a month-to-month basis, sales climbed by 1.1 percent, continuing a streak of five consecutive monthly gains. Overall, transactions have grown by a cumulative 12.5 percent since March 2025, signaling steady momentum in the market. This upward trend stands out because it was not driven solely by major urban centers. While sales in the Greater Toronto Area dipped slightly from July, this was balanced by stronger activity in areas like Montreal, Greater Vancouver, and Ottawa. Such regional shifts demonstrate how diverse market conditions across the country can contribute to national growth.

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Inventory and Listings Update

New property listings also rose in August, increasing by 2.6 percent from July. By the end of the month, there were 195,453 properties available for sale across Canada, reflecting an 8.8 percent rise compared to August 2024. This influx of inventory provides more options for potential buyers, potentially easing competition in some regions. The balance between sales and new listings resulted in a sales-to-new listings ratio of about 51.2 percent, slightly down from July but still indicative of a stable market environment. With 4.4 months of inventory available nationally, conditions remain balanced, neither overly favoring buyers nor sellers in most areas.

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Price Movements and Regional Insights

The national average home sale price in August 2025 stood at $664,078, up 1.8 percent from the previous year. However, the Canadian Real Estate Association's Home Price Index, which tracks typical home sales, showed a minor 0.1 percent decline from July to August, suggesting prices are holding relatively steady amid the increased activity.

Regional price variations were significant. For instance, Trois-Rivières, Quebec, saw the highest year-over-year price growth at 21.8 percent, with average prices reaching $412,545. Saskatoon followed with a 19.2 percent increase to $444,401, while Quebec City experienced a 17.8 percent rise to $474,587. Other areas like Sherbrooke, Quebec (12.9 percent to $526,999) and Thunder Bay, Ontario (12.4 percent to $380,314) also posted double-digit gains. In contrast, some markets saw declines. The Greater Vancouver Area reported a 2.5 percent drop to $1,243,520, and the Greater Toronto Area fell by 4.9 percent to $1,064,182. Areas like Kitchener-Waterloo, Ontario, decreased by 5.9 percent to $754,920, and St. Catharines, Ontario, saw the largest decline at 9.4 percent to $680,272. Nationally, the average price rose by 1.9 percent year-over-year to $689,792. These figures underscore the varied dynamics at play, with Quebec markets leading in price appreciation while some Ontario and British Columbia regions cool off.

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Outlook for the Fall Market

Experts anticipate that sales activity could gain further speed in the coming months, driven by seasonal increases in listings that typically occur in early September. As noted by CREA senior economist Shaun Cathcart, fresh inventory often boosts transactions, and this year's pattern aligns with that trend. He suggested that a potential interest rate cut by the Bank of Canada could draw more buyers into the market, accelerating the pace.

The Bank of Canada is scheduled to make its next interest rate announcement soon, with expectations of a quarter-point reduction to 2.5 percent. Such a move might encourage sidelined buyers, especially if it follows recent holds on rates. Economists describe the current national market as "very balanced," with sales approaching long-term norms, elevated but not overwhelming inventory, and flat prices overall. Regional differences persist, but the overall stability could make fall 2025 an active period for real estate.

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Implications for Buyers and Sellers

For those considering a move in the Canadian housing market, these trends point to a window of opportunity. Increased listings mean more choices for buyers, while rising sales volumes suggest sellers can expect steady interest if properties are priced competitively. Staying informed on local variations is key, as national figures mask the unique conditions in each city or province.

At Coldwell Banker Horizon Realty, we track these developments closely to help clients make data-driven decisions. Whether you're buying, selling, or exploring options, understanding these facts can guide your next steps in this evolving market. For personalized insights, contact us today.