In April, the Canadian Real Estate Association reported a decline in home sales compared to the previous year, while the average sale price increased. Home sales for the month totaled 42,927, showing a 4% decrease from 44,698 in April 2025. However, on a seasonally adjusted basis, home sales in April saw a slight 0.7% increase compared to March.
Shaun Cathcart, CREA’s senior economist, acknowledged that global economic uncertainties and rising mortgage rates have tempered expectations for a robust housing market recovery in 2026. Despite the modest increase in home sales from March to April, Cathcart highlighted improving market conditions with reduced days on the market and stabilizing prices.
Although there was a bump in activity, overall sales remained approximately 10% below typical April levels, according to BMO chief economist Douglas Porter. The national average sale price for a home in April was $695,412, marking a 2.2% year-over-year increase. However, CREA’s home price index, representing typical home sales, decreased by 0.1% from March to April and was down 4.2% year-over-year.
New listings in April increased by 4.1% compared to the previous month, signaling the start of the spring real estate market. Despite a 2.2% year-over-year rise in total properties listed for sale in Canada, there was a 6.1% shortfall from the long-term average for that time of year.
CREA revised its 2026 home sales forecast, attributing the adjustment to the impact of the oil price shock on mortgage rates. The association now predicts only a 1% growth in transactions compared to the initial projection of 5.1%. The national average home price is expected to rise by 1.5% annually to $688,955 in 2026, slightly lower than previously anticipated.
Cathcart noted a narrowing gap between listing and selling prices in April, suggesting potential market movement. Porter cautioned that consumer caution amid inflationary pressures has subdued housing activity, dampening hopes for a significant recovery. Regional variations showed price decreases in British Columbia, Alberta, and Ontario, offsetting gains in other provinces. Toronto experienced a 6.3% drop in average home prices compared to the previous year and a 13% decrease from 2023 figures, reflecting subdued market conditions nationwide.