May Shows Signs of Mid-Year Revival, CREA Reports

Canada’s housing market began showing signs of recovery in May 2025, following several months of slower activity and falling prices. According to the Canadian Real Estate Association (CREA), 49,423 homes were sold across the country in May. While this represents a 4.3% decline from the 51,642 sales in May 2024, it marks a notable 11.6% increase from April 2025, when 44,300 homes were sold. This month-over-month gain points to renewed momentum in the market.

CREA also reported that seasonally adjusted home sales rose by 3.6% from April to May, the first monthly increase since November 2024. New listings increased by 3.1% during the same period, indicating that both buyers and sellers are becoming more active as market uncertainty begins to ease.

On the pricing side, the national average home price increased to $691,299 in May, up from $679,866 in April—a month-over-month gain of 1.7%. However, year-over-year, the average price is still down 1.8%, showing that while recovery may be underway, prices remain slightly below last year’s levels.

“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.” These early signs of increased activity and price stability suggest Canada’s housing market may be moving toward a more balanced phase after a prolonged slowdown.

Affordable Cities Lead the Charge in Price Growth

Smaller and more affordable cities continued to lead in price growth. The Saguenay CMA experienced the most significant year-over-year increase, with prices rising by 23.3% to reach $363,702. Thunder Bay followed, with an 18.9% increase, bringing the average price to $428,831. Meanwhile, the Quebec CMA saw prices increase by 15.2%, reaching $470,625. These markets are attracting buyer interest due to their relative affordability, as many Canadians are looking beyond major urban centers for better value and opportunities.

While national sales were still down compared to last year, buyer activity surged in several smaller, more affordable markets. Sherbrooke CMA led all markets with a 38.9% year-over-year increase in sales. Thunder Bay wasn’t far behind with a 29.1% gain, and Saguenay CMA posted a 23.8% increase. These sharp upticks in smaller markets signal renewed buyer confidence in regions where prices remain within reach and supply is more accessible.

Price Drops in Canada’s High-Priced Markets 

Some of the country’s priciest real estate regions continued to experience price declines. The Fraser Valley recorded the steepest year-over-year drop, with prices falling 6.5% to $1,000,103. Greater Vancouver followed with a 5.6% decrease to $1,268,885, while Greater Toronto saw a 3.9% decline, bringing the average price down to $1,120,879. These high-cost markets remain under pressure, as elevated interest rates and persistent affordability challenges continue to dampen demand.

Sales and Listings Trends in Toronto and Vancouver

In May, both Greater Toronto and Greater Vancouver reported notable year-over-year declines in home sales and average prices, contributing to a broader national slowdown. Sales in Toronto fell by 11%, while Vancouver experienced a more pronounced 17.5% decrease.

Although sales dropped, home prices in these markets held relatively steady month-over-month. Toronto saw a modest 0.3% increase in average home prices, while Vancouver recorded a 1.6% gain. Inventory, however, continued to grow. Toronto’s new listings jumped 17.2% year-over-year, primarily due to increased activity from condo owners. Vancouver also saw an uptick in new listings, rising 2.8% over the same period.

Toronto and Vancouver continue to exert an outsized influence on national housing data. Due to their large populations, high price points, and inventory volumes, fluctuations in these markets have a significant impact on national averages. As other regions begin to show signs of stabilization or recovery, the ongoing challenges in these two key urban centers continue to impact broader market trends significantly.

Alberta’s Market Shows Short-Term Gains, Annual Drops 

Alberta’s housing market reflected a nuanced landscape in May. Short-term gains were evident, but broader year-over-year trends continued to signal underlying challenges. Province-wide, residential sales rose by 3.7% every month, suggesting renewed buyer engagement after months of subdued activity. However, looking year-over-year, sales were still down 8.6%, indicating that the market has not yet fully regained the pace seen in May 2024.

This mixed picture is particularly evident in Calgary. The city experienced a 4.5% increase in sales from April to May (seasonally adjusted), indicating a resurgence of monthly momentum. Yet compared to the same time last year, Calgary’s residential sales were down 15.2%, which is one of the sharpest declines in the country, rivaled only by Greater Vancouver and the Fraser Valley. 

Edmonton mirrored this dynamic, though to a lesser extent. Sales rose 2.7% month-over-month, offering a modest sign of resilience. Still, year-over-year figures show an 8.2% decline, consistent with the slower annual pace that has characterized much of 2025.

Taken together, these trends suggest Alberta’s housing market is in a transitional phase. While there are early signs of short-term stabilization, elevated interest rates, affordability concerns, and a more cautious buyer pool continue to weigh on longer-term performance.

Listings and Inventory Growing, But Market Remains Balanced

Overall, national inventory levels also continued to grow in May. New listings were up 3.1% month-over-month, and the total number of homes for sale reached 201,880, a 13.2% increase over last year. Despite this bump, supply remains about 5% below the long-term average for May. 

“May saw an increased number of new listings hitting the market early in the month, followed by a higher number of transactions in the second half,” said Valérie Paquin, CREA Chair. “It seems like this may carry over into June as well. If you’re looking to buy or sell a property heading into the second half of 2025, you’ll need to understand how national trends are or are not playing out locally.”

Together, these data points suggest that Canada’s housing market may be emerging from its slump. With more listings, rising interest in affordable regions, and month-over-month sales gains for the first time in half a year, May could mark the beginning of a more balanced and stable period, especially if national confidence continues to recover.

Wondering what this could mean for your plans to buy and sell? A local agent can walk you through your options.