Jun 22, 2026
Canada’s housing market appears to be regaining some momentum after a slow start to 2026.
New data from the Canadian Real Estate Association (CREA) shows home sales rose 5.5% from April to May, marking the strongest monthly increase so far this year. The gains were widespread across the country, led by Ontario, British Columbia, Manitoba and Nova Scotia.
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“The national sales increase from April to May was broad-based but driven disproportionately by Ontario,” said CREA senior economist Shaun Cathcart, in the report. “While it was just the first month in 2026 to see any meaningful upward momentum in headline demand, under the surface conditions have been improving for some time.”
Buyers and sellers may finally be finding some common ground
For much of the past year, many buyers waited on the sidelines hoping prices would come down further, while sellers were reluctant to lower their expectations. Now, there are signs that the gap may finally be narrowing.
The national sales-to-new listings ratio rose to 49.2% in May from 46.2% in April, while homes are generally spending less time on the market and prices have begun to stabilize in many regions.
TD economist Rishi Sondhi said the increase in activity suggests buyers and sellers may be becoming more aligned on pricing, helping more deals get done after a weak first quarter.
“Canadian home sales posted a healthy gain in May,” Sondhi wrote in a note, adding that improving market conditions are helping “grease the wheels for transactions.”
CREA’s data points in a similar direction. While benchmark prices remain below year-ago levels nationally, the pace of decline has slowed and sales activity is beginning to pick up.
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Activity is improving, but the market is still far from hot
The rebound illustrated by CREA’s data comes with an important caveat: home sales still remain below last year’s levels.
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Actual home sales in May were still 5.1% lower than they were a year earlier, while CREA’s national benchmark home price index was down 4.1% year over year.
Sondhi noted that May’s gain represents only a partial recovery following what he described as an ”exceedingly weak” first quarter, which was affected by economic uncertainty and poor weather in some regions.
On the ground, some real estate professionals are seeing the same thing.
Eddy Chang, a sales representative with Royal LePage Noralta Real Estate in Edmonton, told Canadian Mortgage Trends that this spring has felt steady rather than explosive.
“Things definitely boomed, but not to the point where it felt like it took off on a rocket,” he said.
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“Definitely, you could feel the seasonality, but my boots on the ground experience is that it was more of a steady pace rather than rocket fuel.”
For buyers, that’s likely welcome news after years of dramatic swings in many housing markets.
What it means for buyers and sellers
For Canadians thinking about buying or selling, the market finally appears to be moving toward a more balanced footing.
There were just under five months of inventory available nationally at the end of May, close to the long-term average and a sign that neither buyers nor sellers currently have a clear upper hand in many markets.
Meanwhile, the national average home price reached $702,079 in May, up 1.5% from a year earlier, according to CREA. However, conditions continue to vary widely across the country, with some regions seeing modest price gains while others remain under pressure.
The biggest change may simply be that buyers are starting to feel more comfortable making a move.
After months of uncertainty, more buyers appear willing to re-enter the market, while sellers are adjusting to current conditions. That’s still a long way from the frenzied markets Canadians saw a few years ago, but it could be an early sign that housing activity is returning to baseline.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
