Canada’s housing market gathered pace in May, with national home sales recording their first monthly increase since late last year—a shift attributed to improving economic sentiment following diplomatic progress with the United States.
The Canadian Real Estate Association (CREA) reported Monday that seasonally adjusted home sales rose by 3.6% from April to May, marking the first monthly gain since November. The uptick in transactions came alongside a 3.1% increase in new listings, suggesting that both buyers and sellers are stepping off the sidelines as tensions ease.
Despite the boost in activity, the benchmark price for a typical Canadian home edged down by 0.2%, settling at $690,900, continuing a modest softening in values even as confidence begins to return.
The shift in momentum comes in the wake of renewed diplomatic efforts between Ottawa and Washington. A recent meeting between Prime Minister Mark Carney and US president Donald Trump appears to have calmed market jitters sparked by earlier trade hostilities.
“May 2025 not only saw home sales move higher at the national level for the first time in more than six months, but prices at the national level also stopped falling,” said Shaun Cathcart, CREA’s senior economist. “It’s only one month of data, and one car doesn’t make a parade, but there is a sense that maybe the expected turnaround in housing activity this year was just delayed for a few months by the initial tariff chaos and uncertainty.”
Year-over-year numbers still down
While the month-over-month data offers a glimmer of optimism, a broader view reveals that the housing market is still recovering from earlier volatility. Compared to May 2024, sales were down by 4.3%, and the total number of homes listed on the market was 13.2% higher, reflecting a gradual buildup of inventory.
That combination of rising listings and subdued prices may offer a window of opportunity for buyers who were previously hesitant due to macroeconomic uncertainty.
The May results could indicate the beginning of a cautious rebound, but experts urge patience. The overall market remains in a holding pattern, with both buyers and sellers adjusting to evolving economic signals.
CREA’s data shows that while housing demand is beginning to stabilize, the market is not yet in full recovery mode. Analysts are watching closely to see whether June and July will confirm a more sustained trend—or if May proves to be an anomaly.
As Cathcart cautioned, “one car doesn’t make a parade,” but for a housing market that’s been stuck in reverse, even one sign of forward motion is enough to turn heads.
CMP
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