Canada’s home prices appeared to be on an upward trajectory in August, for the first time in 2025, with the Teranet-National Bank composite index reporting a 0.4 per cent increase from July. 

The small gain comes as the number of transactions on the resale market continued to rise for the fifth consecutive month, noted senior economist Daren King.

He said the “very soft” market conditions in Ontario tightened somewhat with the recent spike in activity, allowing prices to rise during the month in Toronto, Hamilton, and Ottawa-Gatineau. 

Prices remain down from 2024

Despite this growth in August, the index still remains 4.6 per cent below its December level, with declines over this period of 7.9 per cent in Toronto, 7.4 per cent in Hamilton, and 1.5 per cent in Ottawa-Gatineau. 

Market conditions also eased significantly in British Columbia, with Vancouver and Victoria posting declines of 7.1 per cent and 0.4 per cent, respectively. 

“Against the backdrop of the current trade dispute, market resilience has depended on differing levels of affordability,” said King. “Indeed, the markets with the highest affordability challenges saw the sharpest declines, as the financial risk of such a large real estate transaction was amplified by economic uncertainty.”

What’s next?

King said it is still too early to say whether the positive trend will continue in the months ahead, even with Bank of Canada rate cuts. The Bank of Canada lowered its key interest rate by 25 basis points to 2.5 per cent on Wednesday, marking its first cut since March.

“Continuing uncertainty, moderating population growth, the risk of persistently high long-term interest rates, and a potentially further deterioration in the labour market will continue to weigh on the housing market,” said King.