Canadian home sales recorded their strongest month-over-month increase in May, marking the first meaningful gain of 2026 after a sluggish start to the year, according to the Canadian Real Estate Association (CREA).
May sales up 5.5% from April
In its latest housing market report released Tuesday, CREA said the number of home sales recorded on MLS systems rose by 5.5 per cent from April. The increase was broad-based across the country but disproportionately driven by Ontario, said CREA senior economist Shaun Cathcart.
“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,” Cathcart said.
Despite the monthly gain, actual sales activity remained 5.1 per cent below levels reported in May 2025.
Ontario leads the rebound
Cathcart noted that Ontario’s strong performance suggests the HST rebate on new builds may have only briefly diverted buyers from the existing home market. “The national sales increase from April to May was broad-based but driven disproportionately by Ontario,” he said.
Prices stabilize, market tightens
Home prices continued to stabilize in May. The national benchmark price declined by just 0.1 per cent month over month to $657,000. On an annual basis, the decline was 3.9 per cent. The MLS Home Price Index was down 4.1 per cent from a year earlier.
Market conditions tightened as new listings edged down one per cent month over month. The sales-to-new-listings ratio climbed to 49.2 per cent from 46.2 per cent in April. By CREA’s historical standards, a ratio between 45 per cent and 65 per cent indicates a balanced market.
Buyers and sellers aligning
CREA suggests that buyers and sellers are starting to align on price expectations. The association pointed to tightening sale-to-list price ratios and shorter periods between listings and sale dates as evidence of an increasingly efficient market.
More details to come.
