Home sales in Canada decline annually in May despite signs of improved real estate activity

Ottawa —
Canadian real estate market data showed a continued annual decline in home sales during May, but market indicators at the same time revealed a noticeable improvement in activity compared to previous months, described by experts as the beginning of a gradual return of momentum after a period of slowdown.

Total home sales across Canada reached 47,014 units in May, down 5.1% compared to the same period last year. In contrast, sales rose by 5.5% compared to April after seasonal adjustments, marking the first strong monthly increase since the beginning of 2026.

Specialists believe the recent improvement reflects a growing convergence between buyers' and sellers' expectations, which helped facilitate deal completions and narrow the gap that had hindered activity in recent months.

The average national home sale price recorded CAD 702,079, an annual increase of 1.5%, surpassing the 700,000-dollar mark for the first time in nearly two years.

At the same time, indicators measuring typical home prices showed an annual decline of 4.1%, but the pace of the decrease has become the slowest since the beginning of the year, reflecting signs of price stability in many markets.

At the regional level, some major markets, especially in Ontario, British Columbia, and Alberta, continued to record annual price declines, while other provinces posted gains that helped support the national average.

Observers attribute the market's cautious performance during the spring to ongoing consumer caution due to pressures related to living costs, inflation, and global economic developments, but recent months have seen a gradual improvement in buyer confidence compared to the period marked by greater concerns about the economy and interest rates.

Data also indicate that deferred demand accumulated over the past period has begun to gradually return to the market, while some sellers showed greater flexibility in pricing, which contributed to stimulating real estate activity.

On the supply side, new listings for sale declined slightly by 1% compared to the previous month, while the number of properties available for sale stabilized at about 200,000 units nationwide, a level close to historical market averages.

Several economists expect the second half of 2026 to see a gradual improvement in sales volume, with the possibility of limited increases in national prices, especially in markets that still enjoy a better balance between supply and demand, while favorable buying conditions are likely to continue in some major areas that experienced price declines over the past two years.