Monthly home sales ticked up in August, but housing market activity 'stuck in holding pattern,' says CREA

Canadian home sales saw a 1.3 percent increase in August compared to the previous month, though activity was down 2.1 percent compared to the same period last year, according to the Canadian Real Estate Association (CREA) on Monday.

The association noted that the Bank of Canada's second interest rate cut in late July provided a modest boost to the housing market. However, the broader trend suggests that many potential buyers are still waiting for further rate reductions before making a purchase.

"Despite some early signs of life with the long-awaited start of monetary policy easing, the Canadian housing market remains in the same holding pattern it has been in all year," said CREA senior economist Shaun Cathcart.

As rates continue to decline, "it’s logical that prospective buyers are holding out for better affordability, especially as prices remain relatively stable across much of the country," Cathcart added.

New property listings in August rose by 1.1 percent from the previous month.

The national average home price stood at $649,100 in August, nearly unchanged from a year ago.

"Sales volumes are steady at reasonable levels, new listings are stable, and prices are generally flat across most markets," Bank of Montreal senior economist Robert Kavcic wrote in a note to clients.

"So far, the early phase of the Bank of Canada's easing cycle hasn't sparked a rebound in prices or activity, and we believe any significant uptick is still a few rate cuts away," Kavcic concluded.