Actual home sales across Canada were down 5.1% in May compared with the same month in 2025, even as seasonally adjusted sales activity increased 5.5% from April, according to the latest statistics from the Canadian Real Estate Association (CREA).

The month-over-month increase marked the first meaningful rise in national sales activity in 2026 and was driven largely by gains in Ontario. CREA said improving alignment between buyers’ and sellers’ expectations has contributed to stabilizing market conditions.

“The national sales increase from April to May was broad-based but driven disproportionately by Ontario, suggesting the HST rebate on new builds may have only briefly drawn the attention of buyers away from the existing home market,” said Shaun Cathcart, CREA’s senior economist.

“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. Sellers’ and buyers’ expectations are increasingly aligned, as evidenced by tightening sale-to-list price ratios and shorter periods between listing and sale dates. As a result, prices have largely stabilized following some softness earlier in the year.”

New listings declined 1% from April, while the national sales-to-new listings ratio tightened to 49.2% from 46.2% a month earlier. CREA noted that the ratio remains within the range generally associated with balanced market conditions.

“Like the weather in many parts of Canada this year, the spring market appears to have been delayed by a month or so, but the May numbers left little doubt that activity is now picking up,” said CREA Chair Garry Bhaura.

“The handoff from May into June is typically the busiest time of the year, so we now have a strengthening market happening at the most active time of the year. If you have been on the fence this year as either a buyer or as a seller waiting for a sign, this could be it, and the first step in coming off the sidelines is to get in touch with a realtor in your area.”

There were just over 200,000 properties listed for sale on Canadian MLS Systems at the end of May, unchanged from a year earlier and 2.8% below the long-term average for that time of year. National inventory stood at 4.8 months at month-end, down from 5.1 months in each of the previous three months and close to the long-term average of five months.

The National Composite MLS Home Price Index edged down 0.1% from April and was 4.1% lower than a year earlier, although CREA said the annual decline was the smallest recorded so far in 2026. Regionally, prices remained lower year-over-year in British Columbia, Alberta and Ontario, offsetting gains elsewhere in the country.

The national average home price rose 1.5% year over year to $702,079 in May, topping the $700,000 mark for the first time in 23 months and reaching its highest monthly level in two years.

Pictured: Condominium for sale in Vancouver.

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