Canadian home prices flat again as borrowing-cost uncertainty clouds recovery

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeReal EstateCanadian home prices flat again as borrowing-cost uncertainty clouds recoveryHigher bond yields have already pushed fixed mortgage rates up and renewed expectations of a possible Bank of Canada rate hikeLast updated 13 minutes ago A home for sale on Beach Boulevard in Hamilton, Ont. Photo by Peter Power/Postmedia filesHopes for a real estate rebound are facing a “fresh” setback with house prices flat again in August and the Canadian Real Estate Association (CREA) warning that higher borrowing costs could weigh on the market.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountAccording to CREA’s latest report, the national benchmark home price was $657,400 in August, unchanged from July and three months earlier. Prices were down three per cent year over year and 0.6 per cent from six months ago.Home sales slipped 0.7 per cent from July on a seasonally adjusted basis and were 6.9 per cent below 2025. New listings, meanwhile, rose 3.3 per cent month over month, reversing three consecutive monthly declines over the summer.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againCREA said the increase in supply, alongside the small decline in sales, pushed the national sales-to-new-listings ratio down to 49.1 per cent from 51.1 per cent in July. There were 4.8 months of inventory nationally, unchanged for a fourth consecutive month and just below the long-term average of five months.The association found sales activity has been largely unchanged since May, while prices have moved little since spring –– the longest stretch of price stability since 2024.Shaun Cathcart, CREA’s Senior Economist, said the economic environment has become more challenging, pointing to higher bond yields that have already pushed fixed mortgage rates up and renewed expectations of a possible Bank of Canada rate hike.“This fresh round of incoming headwinds is expected to dampen the prospects for further housing market momentum heading into 2027,” Cathcart said.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.