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Data revealed by the Canadian Real Estate Association (CREA) earlier this month show Canadian home sales climbed 5.1% month-over-month in May.

Other highlights from the report are:

• Actual (not seasonally adjusted) monthly activity came in 1.4% above May 2022.
• The number of newly listed properties rose 6.8% month-over-month but is still historically low.
• The MLS® Home Price Index (HPI) climbed 2.1% month-over-month but was still down 8.6% year-over-year.
• The actual (not seasonally adjusted) national average sale price posted a 3.2% year-over-year increase in May. The actual (not seasonally adjusted) national average sale price posted a 3.2% year-over-year increase in May.

“The rebound has been evident for a number of months at this point, but May really drove the point home with year-over-year comparisons for both national sales activity and national average home price back in positive territory,” said Larry Cerqua, Chair of CREA.

“That being said, the degree to which a recovery will be able to play out on the sales side as opposed to the price side will come down to supply, which remains quite low. If you’re looking for information and guidance about how to buy or sell a property in your local market, contact a REALTOR® in your area,” continued Cerqua.

Despite increasing interest rates, experts are not surprised by this recent data.

“A rebound in housing activity this year was never really in doubt because we knew the demand was there – the only question was around timing and that was answered this spring,” said Shaun Cathcart, CREA’s Senior Economist.

“The 2023 housing puzzle piece that was less obvious was the reluctance of existing owners to take advantage of a slower market to make a move because they don’t want to mess with the ultra-low fixed rates they locked in during the COVID-19 pandemic. Without existing owners supplying the market with new listings, this housing demand rebound may play out more acutely than might have been expected on the price side this year.”

Newly listed homes were up 6.8% on a month-over-month basis in May, but one important thing has not changed: Supply across the country remains low and it will remain low for the foreseeable future due to a number of factors, including high demand and immigration.

You can view the full report here.