In May, home sales in Canada saw a 5.1% decrease compared to the previous year, as reported by the Canadian Real Estate Association. Despite this decline, there was a notable positive shift from April, with a 5.5% increase in activity on a seasonally adjusted basis, totaling 47,014 home sales in May.
The national composite housing price index, reflecting the average prices of typical homes sold, experienced a marginal 0.1% decrease on a month-over-month basis. This index has been on a downward trend for the past 18 months, but CREA’s senior economist, Shaun Cathcart, noted that May’s decline, apart from April, was the smallest since January 2025.
Cathcart mentioned that prices are starting to stabilize as the expectations of both buyers and sellers are aligning more closely. The housing market conditions have been gradually improving beneath the surface for some time, according to him.
In May, new listings dropped 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 saw decreases in British Columbia, Ontario, and Alberta, as indicated by CREA’s data analysis.