Canada’s housing market finds its footing with five straight months of sales growth, rising inventory, stable prices, and cautious optimism for the fall

The Canadian housing market continued its late spring rebound through August, with national home sales rising 1.1% compared to July. This marks the fifth straight month of increasing activity and adds up to a 12.5% gain in transactions since the slowdown in March. August also delivered the strongest sales result for this time of year since 2021. Compared to last year, actual sales were up 1.9%, showing a modest improvement over August 2024.

Sales Up Nationally, Led by Montreal and Vancouver

According to the Canadian Real Estate Association, much of the growth came from Montreal, Greater Vancouver, and Ottawa. These gains were enough to offset a small decline in the Greater Toronto Area. Toronto has been the main driver of national sales increases for much of the year, so a brief pause is not unexpected. The encouraging sign is that other major cities are now picking up steam.

“This five-month upswing in sales is giving buyers and sellers new confidence heading into the fall,” noted Karim Kennedy, Chief Executive Officer of Coldwell Banker Canada. “We are seeing strong momentum in markets like Montreal and Vancouver, showing that the recovery isn’t limited to one region. Canadians are adjusting to the current interest rate environment, and our Coldwell Banker agents are helping clients navigate these opportunities with confidence.”

Overall, activity has been steadily gaining strength since the spring. Many buyers who had been waiting on the sidelines during the quieter winter and early spring are gradually returning to the market.

More Sellers Return as New Listings Rise

Sellers have responded to the uptick in sales by listing more homes. Nearly 76,000 properties came onto the market in August, a 2.6% increase from July and about 6% higher than a year ago. Because new supply rose faster than sales, the sales-to-new-listings ratio eased slightly to 51.2% compared to 52% in July.

That ratio means roughly half of all new listings are selling, a sign of balanced conditions. Buyers have more choice than they did in the spring, while demand remains strong enough to keep pace.

Inventory Lowest Since January, Yet Balanced

At the end of August, Canada had 4.4 months of inventory on the market. That is the lowest level since January, but still within normal ranges for this time of year.

“Even with inventory at its lowest level in months, there’s still enough supply to keep the market healthy and avoid runaway price pressure,” observed Hashim Arthur, Chief Operating Officer of Coldwell Banker Canada. “Conditions are balanced, which is a good place to be. Buyers have more selection than they did earlier in the year, and sellers who price their homes appropriately are still finding strong interest.”

In total, there were about 195,000 properties listed for sale across the country at the end of August. That is almost 9% higher than a year ago and is in line with historical norms for this time of year. The overall supply picture has returned to a more typical state after years of tight conditions, which has prevented the extreme seller’s markets seen in the past.

Home Prices Holding Steady

Despite rising sales, prices have been largely flat. The MLS Home Price Index, which measures the benchmark value of a typical home, slipped by just 0.1% from July. It remains about 3.4% lower than last August, reflecting the declines seen in late 2024 and early 2025 when the market adjusted to higher borrowing costs.

Since April, however, prices have held steady. The national average sale price in August was about $664,000, up 1.8% compared to August 2024. That was the first annual increase in several months and suggests that values are stabilizing, with modest gains showing up in some regions. Year-over-year comparisons are expected to keep improving this fall as the market moves past last year’s lows.

Price patterns vary by region. Higher-priced markets such as Toronto and Vancouver went through deeper corrections last year and are now stabilizing. More affordable markets are beginning to see small increases as activity picks up. The overall message is that prices are no longer falling, but they are not surging either. Buyers are not facing the rapid increases seen during the pandemic, while sellers are generally not under pressure to discount heavily.

What to Watch This Fall

As summer wraps up, attention turns to the fall market, which is traditionally one of the busiest times of the year. Two factors will be key. The first is the surge in new listings after Labour Day, which has already begun. The second is the Bank of Canada’s next interest rate decision. Even a modest rate cut could bring more buyers back into the market.

“We anticipate that if borrowing costs ease even slightly, it will encourage a wave of buyers who have been waiting for a better entry point,” Arthur explained. “Our agents are already seeing more inquiries from clients who are watching mortgage rates closely. With additional listings coming on and a possible rate adjustment ahead, the fall could be a very active season. Buyers who are ready with financing in place will be in a strong position to act quickly when they see the right home.”

Kennedy added, “A balanced market is good news. Buyers have more choice, sellers have realistic expectations, and transactions are happening at a healthy pace. As we head into the fall, preparation and timing will be key. Those who are ready to move will be best positioned to take advantage of opportunities as they arise.”

Why recent failures are a wake-up call for consumers, agents, and brokerages to demand higher standards.

In recent months, a few situations have reminded Canadians how fragile trust in real estate can be. In one instance, a large brokerage closed suddenly after serious issues were discovered in the handling of client deposits. In another, allegations of financial misconduct by a licensed professional raised questions about how problems could go unnoticed inside a long-established office.

These examples are reminders that when oversight or culture falls short, the effects reach far beyond a single transaction. Clients begin to question whether their investments are safe, and professionals across the industry are left to defend the reputation of the profession as a whole.

What Went Wrong

Oversight in real estate is meant to serve two purposes: to protect consumers and to hold professionals accountable. Yet when financial controls are weak or regulators are slow to act, the system fails on both counts. In recent cases, serious problems went undetected until they had already caused significant harm, raising doubts about how closely trust accounts are monitored and how quickly red flags are investigated.

Regulation, on its own, is not enough. Rules and policies only matter if they are enforced with consistency and urgency. Too often, the focus falls on minor technicalities while larger risks go unchecked. When that happens, clients are left vulnerable, and agents who are doing their jobs with integrity find their reputations undermined by the failures of others.

These lapses are not just administrative shortcomings. They weaken the bond of trust that real estate depends on, and they point to the need for stronger oversight combined with a culture that demands higher standards every day.

Trust as the Cornerstone

Buying or selling a home is one of the most important decisions of a lifetime. It depends entirely on trust. Clients must know that their Realtor is acting with integrity, just as Realtors expect honesty from their clients.

Consumers should demand financial accountability. In most provinces, deposits are held in a brokerage’s trust account. Recent events show why it is fair to ask exactly how those accounts are managed, how often they are reconciled, and what protections exist if funds are misused. A reputable brokerage will have a clear answer and will not hesitate to share it.

Professionalism is equally important. Clients should expect their Realtor to act with honesty and fairness, to disclose conflicts, and to put the client’s interests first. If something feels wrong, consumers are right to walk away.

Finally, consumers must look beyond the individual agent to the company behind them. A strong agent in a weak system can still end up caught in disaster. Research the brokerage name on the contract. Ask about its training, compliance, and track record. The right brokerage sets the tone for ethical conduct.

What Agents Should Prioritize

It’s not only consumers who are re-evaluating their choices. Real estate agents themselves have been given much to think about. For many, the sudden closure of a brokerage can be career-altering, leaving agents to scramble to find new homes for their businesses overnight, all while reassuring clients that those clients’ deposits and deals were still safe. The lesson is painfully clear: an agent’s choice of brokerage can either underpin their success or undermine it catastrophically.

Choosing a brokerage based on splits or low fees alone is a short-sighted decision. A rock bottom desk fee means little if the firm cannot protect your clients or your own livelihood.

Agents should ask harder questions. Does the brokerage have strong oversight of trust accounts? How does it respond to misconduct? What kind of mentorship and training does it provide? What is the broker-owner’s reputation in the community?

Culture is critical. A brokerage should promote integrity, discipline those who fall short, and support agents who choose to do the right thing even when it is hard. It should also be prepared for a crisis. When challenges arise, the response must be swift and principled. Clients and agents alike need to see that integrity matters more than convenience, and that the organization will always put trust and accountability ahead of affiliation.

At the end of the day, every Realtor’s career depends on public trust. By choosing brokerages that prioritize ethics and accountability, agents protect their clients and themselves while strengthening the industry’s collective reputation.

The Brokerage Burden

These situations also shine a spotlight on the responsibility of brokerages.  Real estate brokerages are more than just administrative hubs; they are the first line of defence for consumer protection. A brokerage accepts deposit cheques, holds them in trust, supervises transactions, and mentors agents on proper practices. When a brokerage fails at these duties, whether through negligence or malfeasance, the consequences can be devastating, as we’ve seen. That’s why broker-owners must view integrity and transparency not as abstract ideals, but as daily operational imperatives.

Proactive oversight is the starting point. Brokerages should conduct frequent reconciliations of trust accounts and invite third-party review. Some in the industry have called for monthly reporting and mandatory external audits. Brokerages that value transparency will welcome these measures.

Equally important is setting a culture of ethics. Leaders must encourage staff to speak up, protect those who do, and take decisive action when misconduct is uncovered. Trust grows when everyone in the organization knows that integrity is non-negotiable.

A Call to Higher Standards

There is an opportunity when such situations happen. Trust, once broken, can be rebuilt, but it demands action from every part of the profession. Regulators must enforce the rules with speed and strength. Industry associations must continue pressing for consumer protections. Brokerages must go beyond the minimum standard to ensure deposits and deals are safe. Agents must align themselves with firms that share their values. Consumers must keep asking smart questions and expect clear answers.

Most Realtors are already living up to that standard. They are honest, hardworking, and as frustrated as the public when scandals make headlines. Each time an agent goes the extra mile for a client, or a brokerage chooses transparency over convenience, trust is restored a little more.

This is a pivotal moment. We can allow these failures to define us, or we can use them to demand better of ourselves. The choice is ours. Agents must demand higher standards. Clients deserve them. And the future of Canadian real estate depends on them.

Rob Goodings is Vice President of Account Management at Coldwell Banker Canada, where he guides franchise development and helps grow the brand’s presence in new markets. Since joining the company in 2005, he has built a career that spans marketing, learning, and affiliate services, giving him both a deep knowledge of the business and close connections across the network. Rob’s focus is on supporting broker-owners, strengthening relationships, and ensuring the Coldwell Banker brand continues to deliver long-term value across Canada.

Canada’s housing market gained momentum in June with a second month of rising sales and prices stabilizing nationally. CREA’s latest figures reveal very different stories across the country, as Coldwell Banker Canada notes strong Prairie and Atlantic markets while parts of Ontario continue to lag.

In June 2025, national home sales rose for the second month in a row as more buyers returned to the market. The Canadian Real Estate Association reports that home sales recorded through MLS climbed 2.8% in June compared to May. That followed a 3.5% gain in May, marking two straight months of recovery after a sluggish spring. Compared with June 2024, sales were up 3.5%, the first year-over-year increase in many months and a clear sign that the market is moving in a healthier direction.

Highlights for June 2025 across Canada:

• Home sales rose 2.8% over May and were up 3.5% compared with last June.
• New listings fell 2.9%, which tightened supply.
• The MLS Home Price Index slipped only 0.2% from May and was down 3.7% from a year ago, the smallest decline in months.
• The average home price was $691,643 in June, down 1.3% from last year.
• Inventory stood at just over 206,000 homes, equal to 4.7 months of supply, which is about 11% more than a year ago.

CREA’s Senior Economist, Shaun Cathcart, described June as “pretty close to a carbon copy of May,” with sales up about 3% month over month and prices holding steady.

Karim Kennedy, Chief Executive Officer of Coldwell Banker Canada, says these numbers match what his teams are seeing on the ground. “This is the type of market where experience really matters. Canadians are returning to real estate with caution, and they are looking for expert local guidance. Our agents are seeing that shift every day,” he explained, emphasizing the importance of regional insight.

Regional trends tell very different stories

National statistics can hide sharp differences between regions. Ontario, particularly Southern Ontario and the Greater Toronto Area, is only slowly recovering. Sales in the GTA have increased 17.3% since April as buyers who waited through the spring begin to re-enter the market. Even with that momentum, large inventories and affordability challenges are putting light downward pressure on prices. Benchmark prices in Guelph, Niagara and London slipped between 1% and 2.5% in June compared with May. Toronto’s benchmark price fell by almost 1% in June. These are markets that saw very steep price increases during the pandemic and are now adjusting to more normal levels, creating opportunities for patient buyers.

Markets in the Prairies, Quebec and Atlantic Canada are telling a very different story. Property values in Saskatchewan, Manitoba, Quebec and much of Atlantic Canada remain resilient because supply is tighter and demand is still strong. Saskatchewan’s market is a standout performer. Home sales in the province reached 1,768 units in June, the third-highest June on record and 6% higher than a year ago. Prices there are at record levels, with the benchmark price hitting $370,700 in June, about 8% higher than last year. Regina and Saskatoon both posted benchmark price gains of between seven and 8% over the past year, while Quebec City surged by 16%. Several Atlantic Canada markets, including Halifax and Saint John, also saw double‑digit annual price gains.

“It is easy to read a national headline and think the whole country is moving in one direction,” Kennedy noted. “The truth is very different. What is happening in Saskatoon is not the same as what is happening in Toronto. That is why local expertise is so valuable.”

A balanced market heading into the second half of the year

Experts are cautiously optimistic about the second half of 2025. The Bank of Canada’s interest rate policy and broader economic trends will continue to shape the market, but the data suggests that a delayed spring rebound is now taking hold. CREA’s chair, Valérie Paquin, noted that most markets are turning a corner even though conditions still vary widely across the country.

Coldwell Banker Canada encourages buyers and sellers to take advantage of balanced conditions while leaning on experienced local agents for insights. 

The overall outlook for 2025 is one of gradual recovery. Sales are improving, prices have levelled off nationally, and confidence is returning. Every market has its own story, and that is why local insight and trusted advice are more important than ever.

About Coldwell Banker Canada

Founded in 1906, Coldwell Banker is the most established residential real estate franchise system in North America. The brand expanded into Canada in 1989 and has since built a legacy of serving the real estate needs of Canadians from coast to coast. In 2021, Coldwell Banker Canada was acquired by Canadian entrepreneurs Steve Houle and Karim Kennedy, who are dedicated to growing the brand’s presence nationally. For more information, visit coldwellbanker.ca/franchising.