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August brought more homes onto the market, while buyers took a closer look at price, property type and borrowing costs.
Canadian home sales slipped 0.7% in August, while new listings rose 3.3%, according to the Canadian Real Estate Association’s August report. Sales and national benchmark prices have now been largely steady for four months. Sellers appear ready for the fall market. Buyers have fresh properties to consider, along with a less certain financing outlook.
The Fall Listing Bump Hasn’t Built Up Inventory
August’s increase in new listings reversed three months of declines. With slightly fewer sales and more properties arriving, the national sales-to-new listings ratio eased to 49.1%, within CREA’s range for a balanced market.
Buyers browsing the newest listings had more to look at. By month’s end, though, the total number of properties for sale was still close to the historical August average, at just under 200,000. Months of inventory held at 4.8 for a fourth consecutive month.
Newfoundland and Labrador offers an interesting example. New listings there were up 19.8% from August 2025, yet active listings were down 17.2% from a year earlier and remained far below their historical norm. Even a strong month of new supply can leave buyers with limited choice when the market started with a shortage.
Why the Average Price Rose While the Benchmark Fell
CREA’s national average sale price reached $668,219 in August, up 0.6% from a year earlier. Over the same period, its MLS® Home Price Index was down 3%.
The average reflects the homes sold that month. If more expensive homes make up a larger share of those sales, the average can rise even while the benchmark for a representative home falls. Buyers and sellers will get a more useful answer from comparable sales near the property they’re considering.
“The average sale price is an easy number to remember, but it isn’t a pricing guide for the home down the street,” notes Karim Kennedy, CEO of Coldwell Banker Canada. “Buyers and sellers should start with recent comparable sales in their neighbourhood. That’s where they’ll see whether the national trend actually applies to their decision.”
Choice Changes by City and Price Point
August’s regional figures show how differently buyers can experience the fall market. In Ontario, active listings were 41.5% above the province’s 10-year August average. Metro Vancouver also had more properties for sale than usual, with active listings 26.2% above its 10-year seasonal average and sales 20.7% below that average.
The type and price of home also shape demand. In Calgary, overall sales fell 16% year over year, while sales of homes priced above $1 million increased. Greater supply helped those higher-priced buyers find options. Favourable rental conditions, meanwhile, are slowing some buyers’ move into lower-priced homes.
A buyer may have time to compare properties in one market and far fewer options in another. Sellers need to understand the homes competing with theirs and the buyers active at their price point.
Borrowing Costs Are Back in the Spotlight
The Bank of Canada held its policy rate at 2.25% on September 2. It also warned of higher inflation risks, uncertainty around the economic recovery and rising long-term bond yields. Fixed mortgage rates can move with bond yields even when the policy rate stays put. A policy-rate increase remains possible, although the Bank has made no decision to raise rates.
For a buyer, a steady home price may still come with a different monthly payment than the one they calculated earlier in the summer. It’s worth checking the current numbers before the right property appears.
“When the financing picture shifts, clients need to revisit the numbers early,” advises Hashim Arthur, Chief Operating Officer of Coldwell Banker Canada. “Knowing the payment you’re comfortable with, confirming current lender terms and understanding your conditions before you find a home gives you more room to make a sound decision.”
More Listings Call for Sharper Pricing Conversations
The fall listing bump will bring opportunities for agents, but a new listing is only the beginning of the work. Broker owners can help their teams look closely at which price ranges are attracting buyers, where properties are sitting and whether sellers’ expectations reflect recent sales. They’ll also need to keep financing conversations current as rates change.
“In a market like this, it’s easy to get excited about more listings,” adds Paul Abbott, National Vice President, Franchise Development at Coldwell Banker Canada. “The harder job is helping agents price them well and have honest conversations with sellers when early interest is limited. Brokerages that coach their teams through those moments give clients better advice and give listings a better chance of becoming sales.”
For buyers and sellers, August’s figures are a starting point. The more useful conversation is about the homes competing at a particular price, the buyers active in that segment, and the financing available today. Those are the details that will shape the fall market, one decision at a time.
Whether you are considering buying, selling or just watching the market evolve, Coldwell Banker Canada real estate professionals are here to guide you home with confidence, expertise and clarity.
