In May, the Canadian Real Estate Association reported a 5.1% decrease in home sales compared to the previous year. Despite this decline, there was a notable positive trend compared to April, with a 5.5% increase in sales on a seasonally adjusted basis. The national composite housing price index saw a marginal 0.1% drop month-over-month.
CREA’s senior economist, Shaun Cathcart, noted that while the housing price index has been decreasing for the past 18 months, May’s decline was the smallest since January 2025. Cathcart mentioned that prices are starting to stabilize as buyers and sellers are finding common ground.
The housing market conditions have been gradually improving, indicated by tightening sale-to-list price ratios and shorter listing-to-sale periods. 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 declines in British Columbia, Ontario, and Alberta. This data suggests a strengthening alignment between sellers’ and buyers’ expectations in the housing market.