Home sales in May decreased by 5.1% compared to the same period last year, as reported by the Canadian Real Estate Association. Despite this decline, there was notable positive momentum in May compared to April, with a total of 47,014 home sales. On a seasonally adjusted basis, there was a 5.5% increase in activity from April to May.
The national composite housing price index, reflecting the average price of typical homes sold, experienced a slight 0.1% decrease on a month-over-month basis. This index has been on a downward trend for the past 18 months, but the drop in May was the smallest since January 2025, according to CREA’s senior economist Shaun Cathcart.
Cathcart mentioned that prices are starting to stabilize as buyers and sellers are finding more common ground. He highlighted that there is a convergence of expectations between sellers and buyers, indicated by narrowing sale-to-list price ratios and shorter periods between listing and sale dates.
Underlying conditions in the housing market have been gradually improving, according to Cathcart. CREA reported a 1% decrease in new listings for May compared to the previous month, with over 200,000 homes listed for sale on MLS systems nationwide by the end of May.
Regionally, home prices were lower in British Columbia, Ontario, and Alberta, as per CREA’s findings.
