Canadian home sales drop almost 10% from last year in return to 'quiet market'

Canadian home sales fell nearly 10 per cent in April compared to the same time last year, showing that the housing market is cooling down again. After a busy few years marked by rapid price increases and high demand, the real estate market across the country seems to be settling into a quieter phase. Fewer people are buying homes, and the pace of activity has slowed in most regions.

Compared to March, sales in April barely changed, dropping only 0.1 per cent. But when looking at the year-over-year numbers, the difference is much more noticeable. April 2025 saw 9.8 per cent fewer homes sold than April 2024. This points to growing caution among buyers who may be waiting for better conditions or lower mortgage rates before making a move.

Experts say the slowdown isn’t just about interest rates anymore. Some of it comes from uncertainty around the economy, including trade policies and global events. People are being careful about big purchases, especially as prices remain high in many cities. Potential buyers might also be expecting rate cuts from the Bank of Canada later this year and prefer to wait it out.

New listings have increased, which means more homes are available, but not enough buyers are acting quickly. This shift in supply and demand is giving buyers a bit more breathing room. In some markets, it’s taking longer to sell a home, and sellers are having to adjust their expectations. It’s not a buyer’s market yet, but the pressure has eased compared to recent years.

The national average home price stayed fairly steady, suggesting that while fewer homes are selling, prices aren’t dropping dramatically. This could mean sellers are holding firm on what they want to get, or it could reflect stronger markets in a few key cities that are keeping the average price high. Either way, fewer bidding wars and more time to decide are becoming more common.

As summer approaches, many in the real estate world will be watching closely to see if interest rate cuts happen and how that affects demand. For now, the message is clear: Canada's housing market is returning to a more balanced and quieter state. That may offer some relief to buyers who have been sidelined during years of high prices and intense competition.