In April, the Canadian Real Estate Association reported a decline in home sales compared to the previous year alongside a rise in the average selling price. Home sales for the month totaled 42,927, marking a four percent decrease from the previous year. However, there was a 0.7 percent increase in home sales from March to April when adjusted for seasonal factors.
CREA’s senior economist, Shaun Cathcart, mentioned that ongoing global economic uncertainties and increased mortgage rates are tempering the anticipated rebound in housing markets for the year. Despite the slight uptick in activity in April, sales are still around 10 percent lower than typical April levels, according to BMO chief economist Douglas Porter.
The national average selling price for a home in April was $695,412, reflecting a 2.2 percent increase year-over-year. Nonetheless, CREA’s home price index, which represents typical home sales, saw a marginal 0.1 percent decline from March to April and a 4.2 percent drop year-over-year.
New property listings in April rose by 4.1 percent compared to the previous month, signaling the traditional commencement of the spring real estate market. However, despite a 2.2 percent increase in total listings from a year ago, the number remains 6.1 percent below the long-term average for this time of the year.
In response to the current market conditions, CREA revised its 2026 home sales forecast, now predicting only one percent growth compared to the initial forecast of 5.1 percent. This adjustment is attributed to the impact of the recent oil price shock on mortgage rates. The national average home price is expected to increase by 1.5 percent annually to $688,955 in 2026.
While the gap between listing and selling prices narrowed in April, indicating a potential market shift, Porter noted that the housing market recovery expectations have been moderated due to consumer caution amidst rising inflation driven by oil prices. Regional variations were observed, with decreases in prices noted in British Columbia, Alberta, and Ontario offsetting gains in other provinces. Toronto specifically experienced a 6.3 percent drop in average home prices compared to the previous year and a 13 percent decline from 2023 levels.
Overall, the market continues to exhibit subdued activity across many regions, with Porter emphasizing the prevailing regional disparities and the cautious market sentiment amid economic uncertainties.