Canada's home sales rise for the first time in more than six months

Canada’s housing market saw a small but notable upswing in May, with home sales across the country climbing 3.6% from April, marking the first monthly increase since last November. This gain offers a glimmer of hope in a market that has been sluggish for half a year. Although just one data point, it may signal the start of a delayed recovery.

The rebound in activity was led by stronger markets like the Greater Toronto Area, Calgary, and Ottawa. At the same time, new listings rose by 3.1% over April, keeping the balance between supply and demand fairly steady, with the sales‑to‑new‑listings ratio holding around 47%, just shy of April’s 46.8%. Such a ratio suggests the market remains balanced, neither favoring buyers nor sellers.

On pricing, Canada held steady. The MLS Home Price Index, a key benchmark, edged down just 0.2% from April—down notably from previous monthly losses closer to 1%—and slipped 3.5% compared to May of the prior year. The national average sale price, about \$691,299, was 1.8% lower than in May 2024. So, buyers got a bit more breathing room while sellers held their ground.

Inventory also shifted. At the end of May, there were around 201,880 homes for sale—13.2% more than a year earlier—yet still about 5% below the longer-term average. The months‑of‑inventory figure stood at 4.9 months, close to the long-term norm of five months. Below about 3.6 months indicates a seller’s market, while above 6.4 shows a buyer’s market. May’s figures point to calm, balanced conditions overall.

Experts urged caution in reading too much into a single month’s data. A senior economist at the Canadian Real Estate Association said it was only one month of data but could mean that the expected recovery this year was simply delayed. The association’s chair added that May’s rise in listings early in the month, followed by more sales later, suggests more sellers and buyers are entering the market—and that momentum could continue into June.

In short, May’s modest gain in home sales may be the first real sign of a turnaround after more than six months of decline. With prices holding steady and supply rising modestly, the market feels stable—not overheated, not frozen. Buyers and sellers alike should watch closely to see if this momentum carries into the summer months.