Canada's resale real estate market showed signs of life in May following a sluggish start to the spring season, with several major markets experiencing month-over-month growth in demand. According to a recent report from RBC Economics, cities such as Winnipeg, Regina, Ottawa, Toronto, Hamilton, and Saskatoon all recorded higher sales activity in May compared to April.
Despite these gains, RBC noted that home sales remain subdued in many areas, including Vancouver, Toronto, and Hamilton, which are still recovering from prolonged downturns. Year-over-year comparisons paint a mixed picture: while most major markets saw sales decline compared to May 2025, Toronto stood out with nearly seven percent growth in resales last month.
New Listings and Prices
In Toronto, new listings dropped almost 19 percent year-over-year, contributing to tighter supply. However, average prices in the city fell by nearly seven percent compared to the same period last year, marking the highest percentage decline among major Canadian cities. Vancouver experienced the second-largest price drop, with values decreasing by just over six percent.
RBC attributed the price declines and rising inventory to improved affordability, which is drawing buyers off the sidelines. In both Vancouver and Toronto, the sales-to-new-listings ratio now sits just under 40 percent, indicating a buyer's market. A ratio between 40 and 60 percent is considered balanced, while above 60 percent favors sellers.
Market Balance Across Canada
RBC's analysis found that no major Canadian market currently favors sellers. Outside of Toronto and Vancouver, most large markets are in balanced territory, where supply and demand are roughly equal. This shift provides buyers with more options and negotiating power.
However, RBC cautioned that a significant recovery in the housing market depends on resolving economic uncertainties, particularly related to trade tensions with the United States. Until then, the market may continue to experience gradual improvements rather than a full rebound.
