The Canadian Real Estate Association (CREA) reported a notable increase in home sales for August, marking the highest number of transactions in four years. According to the report, residential properties that changed hands rose by 1.9 percent compared to the same month in the previous year. In total, there were 40,257 home sales across Canada last month, a slight increase from 39,522 home sales recorded in August 2024.

Furthermore, home sales exhibited a month-over-month rise of 1.1 percent, indicating a continuous upward trend as this marked the fifth consecutive month of increasing sales. Since March, the cumulative increase in transactions has reached an impressive 12.5 percent, reflecting a growing interest in the housing market.

CREA's senior economist, Shaun Cathcart, indicated that the trend is likely to accelerate moving into the fall season. Historically, this period tends to see a surge in new property listings, which could further stimulate market activity. Additionally, a potential interest rate cut by the Bank of Canada, anticipated to be announced this week, is expected to attract even more buyers into the market.

The CREA also noted an increase in new listings, which were up by 2.6 percent month-over-month. By the end of August, there were 195,453 properties listed for sale across Canada, representing an 8.8 percent increase from the same time last year. This availability of new listings, combined with rising sales, paints a positive picture for prospective sellers and buyers alike.

The actual national average sale price of homes sold in August was recorded at $664,078. This figure shows a modest increase of 1.8 percent compared to the previous year, suggesting that home values are stabilizing even as sales activity picks up.

This data reflects a dynamic real estate market in Canada, with various factors contributing to the ongoing robust activity. The combination of rising sales, increased listings, and projected monetary policy changes is creating an environment that could lead to further market growth in the coming months.