In May, home sales in Canada decreased by 5.1% compared to the same period last year, as reported by the Canadian Real Estate Association. Despite this decline, there was a notable uptick in activity from April, with a 5.5% increase on a seasonally adjusted basis, resulting in a total of 47,014 homes sold during the month.
The national composite housing price index, reflecting the average price of typical homes sold, experienced a marginal decrease of 0.1% month-over-month. Although the index has been on a downward trend for the past 18 months, May’s decline was the smallest since January 2025, according to Shaun Cathcart, a senior economist at CREA.
Cathcart noted that home prices are showing signs of stabilization as the expectations of both buyers and sellers are aligning. This is evidenced by tightening sale-to-list price ratios and reduced timeframes between listing and sale dates.
Despite the overall positive momentum, new listings in May saw a 1% decline compared to the previous month. By the end of May, there were slightly over 200,000 homes listed for sale on MLS systems nationwide.
Regionally, home prices experienced decreases in British Columbia, Ontario, and Alberta. CREA’s data indicates a gradual improvement in market conditions, which have been evolving positively beneath the surface for some time.