Canadian home sales fell in August for the first time since spring, as rising inflation risks and the renewed prospect of a Bank of Canada rate hike threatened to cut short a tentative housing market recovery, the Canadian Real Estate Association (CREA) reported.

Major lenders have raised fixed rates, while some borrowers may face larger increases as discretionary discounts disappear.

The number of homes available for sale in August 2026 was down noticeably compared to last year in the Greater Toronto Area (GTA). Following this trend, home sales also edged lower, as the number of transactions was arguably limited by less choice in some neighbourhoods. Less choice and more competition between buyers could ultimately result in renewed price growth in the months ahead.