Canadian Home Sales Growth Cools in August, Says TD

11:06 AM EDT, 09/15/2025 (MT Newswires) -- Canadian existing home sales increased 1.1% month-on-month in August, marking a slowdown from July's 3.9% month-over-month increase, noted TD after Monday's data from the Canadian Real Estate Association (CREA).

Gains in Quebec (+3.1% month over month), British Columbia (+2.4% month over month) and Alberta (+2.2%) helped lift national sales. Meanwhile, sales were flat in Ontario.

New listings increased 2.6% month over month in August. With sales rising more slowly than new listings, the sales-to-new listings ratio eased 0.8 ppt to 51.2%. This suggests that markets remained balanced last month, said the bank.

Average home prices inched higher by 0.4% month over month in August. Prices were up notably in Quebec (+1.8% month over month), the Atlantic (average gain of 2.9%), Saskatchewan and Manitoba (average gain of 2.3% m/m). Meanwhile, prices were up 1% month over month in Alberta, flat in Ontario, and dipped in B.C. (-0.4% month over month).

The MLS home price index, a more "like-for-like" measure, declined 0.1% month over month, and was down 3.4% on a year-on-year basis. Prices for detached units edged lower by 0.1% month over month, while condo prices fell 0.2% month over month. In year-on-year terms, detached prices were down 2.9%, while condo prices dropped by 5.3%.

Canadian sales growth eased a touch in August, suggesting some satiation of the pent-up demand that had driven three months of solid gains from May to July. TD pointed out that significant pent-up housing demand still exists in B.C. and Ontario.

In the bank's view, this should drive sales higher through next year, helped in the near-term by looming Bank of Canada rate cuts.

The improving demand backdrop should keep the Canadian average home price growth in positive territory, it added.

Supply/demand conditions are still relatively tight across several provinces. In contrast, market balances favour buyers in B.C. and Ontario.

However, average home prices in these markets have been lifted by the outperformance of more expensive housing in recent months and TD assumed this trend will continue in the coming months.

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