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Canada’s housing market showed early signs of recovery in April as home sales recorded a modest monthly rise after a slow start to the month. Data released by the Canadian Real Estate Association (CREA) showed that while transactions improved slightly from March levels, overall activity remained below last year’s pace. Property prices also continued to soften, reflecting cautious buyer sentiment amid economic uncertainty and elevated mortgage rates. At the same time, new property listings increased, adding to available inventory in the market. CREA indicated that any broader housing recovery this year is likely to remain gradual rather than strong.
Canada’s housing market posted a slight improvement in activity in April, although sales and prices continued to remain below year-ago levels as higher borrowing costs and economic uncertainty weighed on buyer sentiment. Advertisement
Data released by the Canadian Real Estate Association (CREA) showed that home sales across the country increased 0.7% in April compared to March. However, on an annual basis, sales were still down 4% without seasonal adjustments, indicating that market activity has yet to fully recover.
Housing prices also remained under pressure during the month. CREA’s Home Price Index slipped 0.1% from March and declined 4.2% compared to the same period last year. The continued fall in prices reflects cautious demand conditions in several regional markets despite some improvement in transaction volumes.
The market also witnessed an increase in supply as newly listed properties rose 4.1% month-on-month. As more homes entered the market, the sales-to-new listings ratio declined to 45.6% from 47.1% in March, moving further below the long-term average. The ratio is commonly used to measure market balance, and the latest figures suggest conditions are becoming relatively softer for sellers.
Shaun Cathcart, senior economist at CREA, stated that although sales growth between March and April remained modest, activity improved toward the end of the month and carried momentum into May. He also noted that the market saw fewer days on market and signs of stabilizing prices during the period.
Cathcart further indicated that ongoing global economic uncertainty along with higher mortgage rates would likely keep the anticipated rebound in Canada’s housing market limited this year. However, he added that the slowdown does not completely rule out gradual upward movement in activity.
The latest data comes shortly after CREA lowered its 2026 housing sales forecast earlier this year following weaker-than-expected market conditions during the opening months of the year. Elevated financing costs, affordability concerns and cautious consumer sentiment have continued to impact residential demand across several Canadian cities.
Source Reuters
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