Canadian real GDP rose by 0.2 per cent in July, after declining by 0.1 per cent in June. Goods-producing sectors rose by 0.6 per cent, while service-producing industries increased by 0.1 per cent. Sectoral growth was led by mining, quarrying, and oil and gas extraction (1.4 per cent), manufacturing (0.7 per cent), and wholesale trade (0.6 per cent). The biggest detractor from growth was from retail trade (-1.0 per cent), while all goods-producing industries grew from the previous month. Output for the offices of real-estate agents and brokers rose by 3.6 per cent month-over-month. Preliminary estimates suggest that real GDP by industry was largely unchanged in August.

The Canadian economy returned to growth in July following several consecutive months of contraction. However, July’s upswing appears temporary, as August’s preliminary estimate suggests growth was flat to close out the summer. We expect the Bank of Canada to cut once more this year to address underlying weaknesses in the Canadian economy and labour market. With that being said, central bankers and economists will now focus on October’s employment and CPI reports —the last two data points for the Bank to consider before its next meeting.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian housing starts decreased 16 per cent from the previous month, totalling 245,791 units in August at a seasonally adjusted annual rate (SAAR). Starts were up 15 per cent from the same month last year. Single-detached housing starts decreased by 2 per cent from last month to 55,271 units, while multi-family and other starts decreased by 20 per cent to 190,519 units (SAAR). 

In British Columbia, starts fell by 19 per cent from last month to 46,274 units (SAAR) in all areas of the province. In areas of the province with 10,000 or more residents, single-detached starts increased by 7 per cent to 4,284 units, while multi-family starts fell by 22 per cent to 39,480 units month-over-month. Starts in the province were 34 per cent above the levels from August 2024. Year-to-date starts are up 150 per cent in Abbotsford and 31 per cent in Victoria, but down 56 per cent in Nanaimo, 37 per cent in Kelowna, and 0.6 per cent in Vancouver.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian prices, as measured by the Consumer Price Index (CPI), rose 1.9 per cent on a year-over-year basis in August, up from a 1.7 per cent increase in July. Month-over-month, on a seasonally adjusted basis, the CPI was up 0.2 per cent in August. The CPI ex-gasoline increased by 2.4 per cent in August after holding at 2.5 per cent during each of the previous three months.  Additionally, shelter price growth was 2.6 per cent in August, the smallest year-over-year increase since March 2021, and down from 3.0 per cent in July. Food price growth registered at 3.4 per cent year-over-year, marginally higher than the previous month. In BC, consumer prices rose 1.8 per cent year-over-year in August, up from 1.7 per cent in July. The Bank of Canada's preferred measures of median and trimmed inflation, which strip out volatile components, remained at 3.1 per cent and 3.0 per cent year-over-year, respectively. 
 
While the Bank of Canada's core measures of inflation have remained at the upper end—and even outside of—their target range, 3-month annualized core inflation has stabilized around 2.5 per cent. Coupled with weaker-than-expected second-quarter growth, this report is unlikely to sway the Bank of Canada away from a likely rate cut tomorrow in hopes of stimulating the economy heading into the final quarter of the year. 

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian employment decreased by 0.3 per cent from the previous month, losing 66,000 jobs to 20.955 million in August. The employment rate fell by 0.2 points to 60.5 per cent, while the unemployment rate rose 0.2 points to 7.1 per cent. Average hourly wages rose 3.2 per cent year-over-year to $36.31 last month, while total hours worked were up 0.9 per cent compared to August of the previous year.

Employment in B.C. fell by 0.5 per cent to 2.936 million, losing 15,700 jobs in August. Employment in Metro Vancouver fell by 1.1 per cent to 1.679 million. The unemployment rate in B.C. increased by 0.3 points to 6.2 per cent in August. Meanwhile, Vancouver's unemployment rate also rose by 0.3 points to 6.4 per cent in the eighth month of the year. 

August's jobs report demonstrates a further cooling of the Canadian labour market, with the unemployment rate reaching its highest level in four years. Job losses were concentrated in part-time work as seasonal positions wind down, while full-time employment was largely unchanged following a weak July. Moreover, core-aged employment for men and women reached its lowest levels in over 7 years each. Overall, the Canadian labour market in 2025 can be characterized by negative employment growth and steady upticks in unemployment as broader uncertainties continue to loom over Canadian households and businesses. This report favours a rate cut from the Bank of Canada in a couple of weeks as it looks to reignite the economy moving into the fall.

Copyright British Columbia Real Estate Association. Reprinted with permission.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver* is $1,150,400. This represents a 3.8 per cent decrease over August 2024 and a 1.3 per cent decrease compared to July 2025.

Specifically:

- The benchmark price for detached homes decreased 4.8% from August 2024 and decreased 1.2% from July 2025.

- The benchmark price for attached/townhouses decreased 3.5% from August 2024 and decreased 1.8% from July 2025.

- The benchmark price for apartment/condos decreased 4.4% from August 2024 and decreased 1.3% from July 2025.

*Areas covered by the Real Estate Board of Greater Vancouver include: Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.