Housing supply, meanwhile, increases in Edmonton, Calgary.
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Real estate resales in Canada were largely flat in August after seeing a small bump in activity to start the summer amid Bank of Canada interest rate cuts.
Sales grew nationally only about one per cent month over month in August, and they were down about two per cent from the same month last year, the report found.
Furthermore, the MLS Price Index decreased almost four per cent year over year, and was flat month over month.
Nationally, more than 177,000 homes were listed for sale in August, an increase of nearly 19 per cent from a year earlier.
Still, the report found that new listings remain 10 per cent below the Canadian historical average of 200,000 listings. New listings also grew about one per cent month over month in August, with Calgary and Edmonton both seeing increases in supply.
That is despite a decline in listings in Canada’s largest real estate market Toronto, it found.
Given sales and listings were flat in August from July, the national sale-to-new-listing ratio remained largely unchanged at 53 per cent. Last month’s ratio, reflecting a market in balance between buyers and sellers across Canada, is slightly below the long-term average of 55 per cent.
For context, a ratio above 60 per cent is generally considered a market that favours sellers, while a ratio below 40 per cent typically favours buyers. A ratio between 40 and 60 per cent is viewed as reflecting balanced market conditions.
Supply also remained steady through the August with 4.1 months of inventory, CREA stated, down from 4.2 months in July.
The long-term average is about five months of supply, the report added.