Canadian home sales rise 5.5% in May as prices edge lower

Tuesday 16 June 2026 - 11:45

Canadian housing activity showed signs of recovery in May, as home sales increased by 5.5% compared with April, according to data released by the Canadian Real Estate Association (CREA). The rebound comes after a relatively slow start to the spring season, which is traditionally one of the busiest periods for the real estate market in Canada.

Despite the monthly improvement, the market still appears softer on a yearly basis. Home sales remained 5.1% lower compared with the same period last year, indicating that overall demand has not fully returned to previous levels.

Property prices, meanwhile, continued to show slight weakness. The national Home Price Index declined by 0.1% over the month and was down 4.1% year-over-year. This suggests that while more buyers are returning to the market, pricing pressure remains in favor of buyers in many regions.

According to CREA officials, the delayed spring momentum may be linked to seasonal conditions, but recent figures suggest a gradual pickup in activity. Newly listed properties also decreased by 1% month-over-month, showing a modest tightening in supply.

Market balance indicators shifted slightly in May, with the sales-to-new listings ratio rising to 49.2% from 46.2% in April. However, this level still remains below the long-term average of 54.8%, meaning the market is not yet fully balanced.

Overall, the Canadian housing market appears to be stabilizing after a slow start to the year, with improving sales activity but continued downward pressure on prices.