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In May 2025, Canadian home sales rose 3.6% from April, marking the first month-over-month increase since November 2024, according to the Canadian Real Estate Association (CREA). This uptick was led by stronger activity in Toronto, Calgary, and Ottawa, and represented the end of a four-month slide in sales. Meanwhile, the national composite home price index decelerated its decline to just –0.2% month-over-month—slowing down from prior monthly drops near 1% and the average sale price was roughly $691,300, down 1.8% year-over-year.

Despite the sales rebound, the broader market remained cautious. Active listings in May totaled 201,880, up 13.2% year-over-year, though slightly below long-term averages. The sales-to-new-listings ratio edged up from 46.8% to 47%, still close to the balanced‑market threshold, which CREA defines as between 45%–65%; anything below 45% signals a buyers’ market. CREA’s Senior Economist Shaun Cathcart suggested the delayed spring rebound might have been tempered by earlier tariff uncertainties, but the rebound in May indicates the recovery may have simply been postponed.

Other data echoed CREA’s findings. Scotia Bank economists reported seasonally adjusted May home sales at around 37,600, up 3.6% from April, though still down marginally year-over-year, with stable national average prices and the sales-to‑listings ratio sticking at 47%. Similarly, CREA’s seasonal adjustment showed sales-to-new listings moving from 46.8% in April to 47.0% in May, with months-of-inventory holding steady near 4.9 months, close to pre-pandemic norms. Together, these indicators point to a cautiously improving housing market in May—steady but modest, lacking the strong momentum earlier anticipated.

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