National home sales up 5.5 per cent in May as market strengthens

Tuesday, June 16, 2026

Canadian home sales rose 5.5 percent in May from April, reaching nearly 38,800 transactions nationwide, driven by lower home prices and stronger activity in the Toronto and Ontario markets. Although sales remain below the 10-year average, the rebound and stabilized prices suggest improving market balance and potential continued momentum into the summer.

Canadian home sales experienced a notable rebound in May, rising 5.5 percent from April, marking the largest increase in more than a year as buyers responded to declining home prices. According to data released by the Canadian Real Estate Association (CREA), nearly 38,800 homes were sold nationwide last month.

The Toronto region saw transactions climb 10 percent from April to May, while Ontario overall registered an 8.8 percent increase. This marks the strongest monthly sales growth since November 2024, when a series of Bank of Canada interest rate cuts helped reduce mortgage rates from previously elevated levels.

Despite the monthly upswing, seasonally adjusted May sales remained 5.6 percent below the 10-year average for that month, indicating that overall activity has yet to fully recover to historical norms.

CREA senior economist Shaun Cathcart noted that buyer and seller expectations have begun to converge after several years of imbalance. During the initial years of the housing slowdown, sellers often held out for prices reminiscent of the peak pandemic boom, leading to longer market times and fewer completed transactions. Presently, homes are spending less time listed before being sold.

Price trends have also stabilized compared to earlier in the year. CREA’s Home Price Index, which excludes the highest-value transactions, edged down just 0.1 percent to $657,700 from April to May—one of the smallest monthly declines since January 2025, apart from an increase recorded in April.

Regionally, the Home Price Index for Greater Toronto slipped by 0.1 percent over the same period, while Vancouver’s benchmark price, the highest in the country, remained steady. However, on an annual basis, the national index is still 4.1 percent below its level in May 2025 and 9 percent lower than three years ago.

New listings decreased slightly in May, falling 1 percent compared to April, although the total number of active listings was largely unchanged from a year earlier and only 2.8 percent below the long-term average for the season. CREA highlighted that the May-to-June period traditionally sees increased real estate activity, suggesting that market momentum may continue into the summer months.