Real estate activity edges upward after a slow spell
Canada’s housing market experienced its first significant surge in activity since last November, with home sales climbing by 3.6% between April and May 2025. This increase signals a potential shift in market dynamics after months of subdued performance, according to the latest report from the Canadian Real Estate Association (CREA). While sales gained momentum, national home prices largely stabilized, easing previous downward trends.
The notable increase in transactions was predominantly led by a surge in the Greater Toronto Area (GTA), Calgary, and Ottawa. “May 2025 not only saw home sales move higher at the national level for the first time in more than six months, but prices at the national level also stopped falling,” stated Shaun Cathcart, CREA’s senior economist. “It’s only one month of data, and one car doesn’t make a parade, but there is a sense that maybe the expected turnaround in housing activity this year was just delayed for a few months by the initial tariff chaos and uncertainty.”
Alongside the rise in sales, new listings also saw an uptick, increasing by 3.1% month-over-month. This balanced growth kept the national sales-to-new listings ratio at a stable 47%, nearly unchanged from April’s 46.8%. This ratio suggests balanced market conditions, hovering near the long-term average of 54.9% for a healthy market.
The MLS® Home Price Index (HPI), a key measure of price trends, was almost unchanged, showing a marginal decrease of -0.2% month-over-month. This follows three consecutive months of more significant declines, indicating a newfound stability. On a year-over-year basis, however, the national composite MLS® HPI remained down by 3.5%. The actual (not seasonally adjusted) national average sale price in May 2025 stood at $691,299, a 1.8% decrease from May 2024.
Inventory levels also remained close to historical norms, with 4.9 months of inventory available on a national basis, nearing the long-term average of five months. Valérie Paquin, CREA chair, observed that “May saw an increased number of new listings hitting the market early in the month, followed by a higher number of transactions in the second half of the month, so overall more sellers and buyers compared to April.” She anticipates this trend may continue into June, advising prospective buyers and sellers to consult local REALTORS® to understand specific market conditions.
