After posting a slight increase of 0.1% in July, the Teranet–National Bank Composite Index turned downward again in August, with a monthly decline of 0.2%. This contraction marks the
eighth decline in nine months, pushing prices down 4.2% from their most recent peak in November 2025 and to their lowest level since April 2023.
The price increase in July capped a recovery in activity observed in the resale housing market during the spring and summer, which was driven by a significant improvement in the labour
market over that period and in housing affordability conditions. However, home sales began to decline again in August, which had a negative impact on price trends, while the
upswing in the job market appears to be fading.
Among other headwinds, it is worth noting that housing affordability is expected to deteriorate over the coming quarters. Indeed, the sharp rise in U.S. bond yields has pushed Canadian bond
yields higher. Although the impact on mortgage rates has been limited so far, higher financing costs are expected in the coming weeks for households looking to take out a mortgage. This increase will therefore limit their borrowing capacity and weigh on price growth.