Canadian home sales recorded their strongest monthly increase of 2026 in May, offering the clearest sign yet of renewed buyer activity after a slow start to the year, according to the Canadian Real Estate Association.
CREA said Tuesday that home sales reported through Canadian MLS systems rose 5.5 per cent from April to May. The increase marked the first notable month-over-month gain in national demand this year, though activity still trailed last year’s pace.
“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,” CREA senior economist Shaun Cathcart said.
Despite the May rebound, actual sales activity remained 5.1 per cent lower than levels recorded in May 2025, showing Canada’s housing market has not fully recovered from earlier weakness.
CREA said the sales increase was broad across the country, but Ontario played an outsized role in the national gain.
“The national sales increase from April to May was broad-based but driven disproportionately by Ontario, suggesting the HST rebate on new builds may have only briefly drawn the attention of buyers away from the existing home market,” Cathcart said.
The comment points to renewed interest in resale homes after attention briefly shifted toward new construction. Ontario’s influence also highlights how heavily national housing trends often reflect movement in the province’s large real estate markets.
Prices showed further signs of levelling off in May. CREA said the national benchmark home price slipped 0.1 per cent month over month to $657,000.
On a year-over-year basis, the benchmark price was down 3.9 per cent. The MLS Home Price Index fell 4.1 per cent over the same period.
The small monthly decline suggests prices have started to stabilize after broader weakness in the Canadian housing market.
Market conditions tightened in May as new listings fell one per cent from April. At the same time, the sales-to-new-listings ratio rose to 49.2 per cent, up from 46.2 per cent a month earlier.
CREA considers a ratio between 45 per cent and 65 per cent to reflect balanced market conditions.
The association said buyers and sellers appear to be moving closer on price expectations. CREA pointed to tighter sale-to-list price ratios and shorter timelines between listing and sale dates as signs of a more efficient market.
The May data suggests Canada’s housing market has entered a steadier phase, though future sales and price trends will depend on whether demand continues to build through the summer.
