Home Sales Falls Further In May: 8.6% From April, 21.7% Year-On-Year

Latest statistics from the Canadian Real Estate Association (CREA) show home sales continuing the downward trend, falling 8.6% month-on-month in May. This brings the market activity closer to its pre-pandemic levels.

Chart of interest A

Non-seasonally adjusted home sales also fell 21.7% from the same period last year, selling 53,720 houses compared to 68,598 units in May 2021.

“May picked up where April left off, with sales activity continuing to slow and softening prices in many parts of the country,” said CREA Chair Jill Oudil.

The market is seeing a normalization of activity coming from the recent spike as Canada reels from the pandemic. The agency said “inventories are finally beginning to rebuild from record lows.”

“We are in a period of rapid change, but one that should settle to a more balanced housing market in time,” added Oudil.

But while the slowdown is expected, CREA’s Senior Economist Shaun Cathcart highlights “how fast we got here.”

“With the now very steep expected pace of Bank of Canada rate hikes, and fixed mortgage rates getting way out in front of those, instead of playing out steadily over two years, that cooling off of sales and prices seems to have mostly played out over the last two months,” Cathcart said.

Newly listed houses increased 4.5% on a month-to-month basis, putting the sales-to-new listings ratio down to 57.5%–its lowest level since April 2019.

Price point has also marginally declined by 0.8% from the previous month, with the national benchmark price ending at $822,900.

For 2022, the agency is estimating some 568,288 properties to trade hands, forecasting a 14.7% decline from 2021. Average home price is expected to increase by 10.8% from the previous year, pegged at $762,386.


Information for this briefing was found via Canadian Real Estate Association. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

US Home-Sellers Forced to Drop Prices as Real Estate Market Loses Steam

Home-sellers across the metro US are slashing their asking price, as the Fed’s panicked tightening...

Tuesday, July 26, 2022, 03:01:00 PM

Canadian Home Sales Slump 7.4% In May

Canada’s housing market continued its cooling-off trend in May, as both home sales and new...

Wednesday, June 16, 2021, 11:04:00 AM

Major Canadian Housing Markets Plunge in July Amid Trade Uncertainty

Major Canadian housing markets posted steep month-over-month price declines in July 2025, with Toronto and...

Monday, August 18, 2025, 10:19:37 AM

GTA New Home Sales Hit Record Low in July 2024

The Greater Toronto Area housing market experienced a significant downturn in July 2024, with new...

Saturday, August 31, 2024, 07:28:00 AM

Canadian Home Listings Surge in January Amid Trade Tensions

New home listings across Canada jumped 11% in January from December, marking the largest monthly...

Thursday, February 20, 2025, 07:40:45 AM