Ontario Home Sales Fall to Slowest August in 25 Years

Home sales in Ontario fell 6% from a year earlier to 13,620 in August, according to figures cited by Ownright and Zoocasa, in what the real estate board OREA described, per Ownright, as the province's slowest August in 25 years.¹²

A softer Ontario market

Joel Fox, chief operating officer at Ownright, said the province just experienced its weakest August in twenty-five years, adding that nothing in the current data points toward a busy autumn, a point he said was worth stating outright.¹

According to Ownright, Ontario sales also came in roughly 4% under the average pace seen over the previous five Augusts, though this particular figure carries a disputed status in the sourced material.¹

The Ontario MLS HPI benchmark stood at $745,400, down 3.6% from a year earlier, while inventory reached 5.2 months of supply, well above the typical 3.1-month level normally seen at this point in the year, according to Ownright and Zoocasa.¹²

National trends

Nationally, home sales edged down 0.7% compared with July and stood 6.9% lower than the same month last year, according to Ownright, citing CREA data. Monthly national sales activity has been largely unchanged since May.¹

New listings climbed 3.3% compared with July, breaking a streak of three monthly drops, a shift CREA linked to sellers getting an early start on the fall market, Ownright reported. The ratio of sales to new listings eased to 49.1% from 51.1%, and the national MLS HPI benchmark held steady month over month but was down 3% from a year earlier.¹

Rate outlook shifts

According to Ownright, a rate cut looked possible when the Bank of Canada held rates on September 2, but markets are now pricing a hike instead, and fixed mortgage rates are already up. Ownright said the national benchmark price has barely moved since spring, while higher oil prices are feeding inflation and tariff pressures weigh on growth.¹

Joel Fox said: "Waiting on rates is a weaker argument than it was two weeks ago, and the client who needs a few weeks to get ready can take them."¹

Legal and tax details

Ownright noted that ending a fixed-rate mortgage before its term ends typically triggers a penalty equal to whichever is larger, three months of interest or the interest rate differential, and that identical balances can draw very different penalty quotes from two different lenders.¹

It also said many lenders will only accept a power of attorney arrangement under particular preset conditions, and some reject it outright, meaning that without securing approval beforehand, lenders can withhold mortgage funds on closing day.¹

On tenancy, Ownright said an existing tenancy typically continues even after a property is sold, and the path to vacant possession under section 49 applies only to buildings with three units or fewer, or to a condo, meaning a buyer purchasing a tenanted triplex can never be assured of possession at closing.¹

Coverage this cycle also focused on new HST rebates, which Ownright said offer a combined cap of $130,000 for buyers purchasing their first newly built home, typically applied as a credit at closing rather than paid out in cash.¹

Population and prices

Zoocasa linked the August housing figures to Canada's reported drop in population, while cautioning that shifts in population by themselves do not determine home prices. It said supply, interest rates and local demand remain important factors, alongside Ontario's elevated active inventory and the 3.6% annual benchmark-price decline.²

Client feedback

In a September 2026 review published via Ownright, a buyer identified as Melissa said: "We had a great experience with Ownright and their talented team," adding, "They were so good with communicating during each step of the process," and naming two staff members directly: "We would highly recommend Alam and Benjamin in particular from Ownright."¹