National Home Sales Gain Modest Momentum with 0.7% April Lift
Home sales in Canada rose 0.7 per cent in April, the first increase in half a year as falling home prices brought potential buyers back into the market.
There were 35,578 sales last month, according to the Canadian Real Estate Association or CREA. That was the first monthly increase since October.
However, sales were 4 per cent lower than April of last year and 10 per cent below the 10-year average for that month.
CREA recently downgraded its annual sales forecast due to the higher mortgage rates and economic uncertainty from the Middle East war and U.S. trade disputes.
“People have been waiting to buy a house and it is just one thing after another,” said Shaun Cathcart, CREA’s senior economist.
“Three months ago, I would have expected this April number to be much stronger. We went from decently positive to moderately positive.”
CREA’s forecast is for annual sales in 2026 to rise 1 per cent over 2025. In January, the association forecast a 5.1 per cent increase.
Mr. Cathcart said some of the pent up demand from buyers is starting to turn into sales. “The propensity to own a home is still high.”
Meanwhile, more homeowners put their properties up for sale in April, giving would-be buyers more options. New listings rose 4.1 per cent month over month.
The national home price index, which excludes the highest valued transactions, fell 0.1 per cent to $658,100 in April. CREA said that was the smallest monthly decline since October. Compared to last April, the index is down 4.2 per cent.
Mr. Cathcart said that sellers and buyers are starting to see “eye to eye” on value, with sellers lowering their expectations for the type of high prices that were prevalent during the pandemic’s real estate boom.
“Sellers are adjusting expectations and that is bringing buyers in faster in the negotiation,” he said.
Home prices in British Columbia and Ontario have declined more than the rest of the country.
In the Vancouver region and Lower Mainland, the home price index has declined nearly 7 per cent year over year.
In some areas near Toronto such as Oakville-Milton, the typical home price is down 9.3 per cent year over year. In Mississauga, it’s fallen 7.2 per cent.
This article was first reported by The Globe and Mail
