In May, home sales in Canada decreased by 5.1% compared to the previous year, as reported by the Canadian Real Estate Association (CREA). However, there was a positive upswing in activity from April, with a 5.5% increase on a seasonally adjusted basis. The national composite housing price index, reflecting average home prices, saw a slight 0.1% decline month-over-month.
Despite the index’s continuous decline over the past 18 months, CREA’s senior economist, Shaun Cathcart, noted that May marked the smallest drop since January 2025, signaling a potential stabilization in prices as buyer-seller alignment improves. Cathcart emphasized the growing harmony in expectations between sellers and buyers, leading to tighter sale-to-list price ratios and shorter listing-to-sale durations.
Under the surface, market conditions have been gradually improving, according to Cathcart. New listings in May decreased by one percent compared to the previous month, with over 200,000 homes listed for sale on MLS systems nationwide by the end of the month. Regionally, home prices experienced decreases in British Columbia, Ontario, and Alberta, as per CREA’s data.