Canadian Home Sales Inch Higher in April as Prices Stabilise and Listings Climb

The Canadian Real Estate Association's April 2026 statistics paint a picture of a housing market that is finally finding its footing after a sluggish start to the spring, but is still well short of the activity Canadians have come to associate with the May selling season. Home sales recorded over Canadian MLS systems rose 0.7 per cent on a month-over-month basis in April, while the non-seasonally adjusted national average price hit $695,412, up 2.2 per cent from the same month a year ago.

The numbers, released by CREA on May 14, suggest the market has avoided the deeper slide some economists had warned about earlier in the year, but they also show that buyers and sellers remain cautious as trade tensions, tariff uncertainty and the lingering effect of higher mortgage rates weigh on decisions.

For policymakers in Ottawa and the provinces, the report offers a mixed verdict on the Carney government's housing strategy. Listings are climbing, which should help affordability over time, but transactions are still tracking 4 per cent below April 2025 on a not-seasonally-adjusted basis, a sign that demand has not yet caught up with supply.

What the numbers show

According to CREA, monthly home sales activity in April was up 0.7 per cent compared with March on a seasonally adjusted basis. Actual unadjusted activity, however, was 4 per cent below April 2025. The number of newly listed properties jumped 4.1 per cent month over month, outpacing sales and pushing the national sales-to-new listings ratio down to 45.6 per cent, compared with 47.1 per cent in March.

That ratio is in the middle of the range CREA considers a balanced market. Anything above roughly 60 per cent is generally considered a sellers' market, while readings below 40 per cent typically indicate a buyers' market. The April reading suggests neither side has the upper hand nationally, although regional conditions vary widely.

There were 187,647 properties listed for sale across the country at the end of April, up 2.2 per cent from a year earlier but still 6.1 per cent below the long-term average for that time of year. Days on market continue to fall, and CREA noted that prices appear to be stabilising in most major markets after several months of softness.

The context

The housing market entered 2026 on shaky footing, weighed down by uncertainty over US trade policy, slower job growth in manufacturing-heavy Ontario, and the lingering effect of the Bank of Canada's earlier tightening cycle. The central bank has held its overnight rate steady at 2.25 per cent through April after a long series of cuts, with the next decision scheduled for June 10.

CREA itself trimmed its annual sales forecast in mid-April, citing what it called a shaky economic start to the year. Several major banks have followed suit, predicting a more gradual rebound than they did at the start of the year, although most still see positive growth for the second half of 2026 as rates remain accommodative and immigration continues to support housing demand.

The Canada Mortgage and Housing Corporation has separately warned that housing starts remain well below what would be needed to restore affordability to historical norms, even as government programs push to accelerate construction. The federal Build Canada Homes initiative and provincial fast-tracking measures are starting to translate into more permits, but the impact on completions is still months away.

What it means for buyers and sellers

For buyers, the April numbers suggest that bargaining power has improved modestly, particularly in markets where listings have grown faster than sales. Greater inventory in cities such as Toronto, Vancouver and Calgary means buyers have more options and more time to make decisions, although affordability remains stretched by historical standards.

For sellers, the report is a reminder that pricing strategy matters more than it did during the pandemic-era boom. Homes that are appropriately priced and well-presented are still moving relatively quickly, particularly in markets where supply remains tight, but overpriced listings are sitting longer.

First-time buyers continue to face the toughest challenge. Despite recent moderation in prices in some regions, the combination of qualifying rates, down payment requirements and insurance premiums means that household incomes in the major centres remain insufficient for many to enter ownership without significant family help or co-buying arrangements.

Regional differences widen

The national averages mask significant regional variation. Markets in Atlantic Canada, particularly in New Brunswick and parts of Nova Scotia, continue to see strong year-over-year price gains, driven in part by interprovincial migration. The Prairies have also remained relatively resilient, with Calgary and Edmonton posting steady activity.

The Toronto area and parts of southern Ontario continue to lag, with sales below historical norms and prices little changed from a year ago. Vancouver and the Lower Mainland have shown signs of stabilisation but remain well below their pandemic peaks. Montreal and other parts of Quebec are tracking close to the national pattern, with modest sales gains and rising listings.

The federal government's push to accelerate housing supply has begun to show up in permit data in several provinces, particularly British Columbia and Ontario, where municipal zoning reforms tied to federal funding agreements are starting to translate into more applications for multi-unit projects.

Rental market pressures

Even as the resale market stabilises, the rental side remains under sustained pressure in most major Canadian cities. Vacancy rates have remained tight in Toronto, Vancouver, Montreal and Ottawa, and rents have continued to climb even as wage growth has moderated. CMHC data indicates that purpose-built rental construction has accelerated in some markets, but completions still lag the level of new household formation driven by population growth.

The federal government's housing programs, including the Apartment Construction Loan Program, the GST removal on purpose-built rentals and several provincial initiatives, are intended to ease that pressure over time. However, the lag between policy announcements and additional units coming online means the rental market is unlikely to see meaningful relief before late 2027 in most major centres.

For tenants, the situation continues to translate into difficult financial choices, including delayed family formation, longer commutes from more affordable communities and rising rates of household sharing. Provincial and municipal governments have explored a range of additional measures, from rent stabilisation to expanded supportive housing, with varying success.

Construction and land supply

Housing starts have been one of the most closely watched indicators throughout the year. CMHC's most recent figures indicate that starts are running below the annual pace required to meaningfully close Canada's housing shortage, although there are pockets of significant new construction in several urban regions, including parts of the Greater Toronto Area, Calgary and Edmonton.

Land supply, zoning rules and municipal approvals continue to be among the most discussed structural constraints. Federal funding tied to local zoning reform has produced some change at the municipal level, including in several Ontario and British Columbia cities, but the broader pace of change remains uneven.

Builders have also flagged labour and materials cost pressures, including the indirect effects of US tariffs on certain construction inputs. The combination of these factors has made it difficult to translate strong demand signals into the pace of completions that policymakers say is needed.

Economic implications

The housing market is a major component of the Canadian economy, both directly through construction and indirectly through the wealth effect on consumer spending. CREA's data suggests that residential investment is unlikely to be a major drag on growth in the second quarter, but it is also unlikely to be a significant tailwind.

That has implications for the Bank of Canada's next rate decision in June. Most market economists currently expect the central bank to hold its policy rate steady, but the housing data adds to the case for caution. Strong inflation readings, particularly on energy prices linked to the Middle East conflict, have already complicated the rate outlook, and a housing market that is stabilising rather than weakening reduces pressure on the bank to ease further.

Mortgage renewals remain a key variable. Hundreds of thousands of Canadian households face renewals over the next two years at rates higher than what they currently pay, and any deterioration in housing or labour markets could amplify the financial strain on those households.

Demographics and immigration

Underlying demand for housing continues to be shaped by demographic and immigration trends. Canada's population has grown significantly over recent years, driven primarily by immigration, and household formation has remained elevated. While federal immigration targets have been adjusted, the cumulative effect of recent years of strong population growth continues to push against limited housing supply.

Regional patterns of population growth have shifted, with significant interprovincial migration from Ontario and British Columbia toward Alberta and parts of Atlantic Canada. These flows have shaped housing demand in receiving regions, contributing to price strength in markets like Calgary, Edmonton and Halifax even as larger metropolitan areas have cooled.

Provincial governments and municipalities continue to grapple with how to align housing supply with these demographic patterns. The federal Housing Accelerator Fund and related programs are designed to support that alignment, but the pace of municipal zoning and approvals reform remains uneven across the country.

What's next

CREA's next monthly report, covering May activity, will be the first to capture the traditional peak of the spring market. Industry watchers will be looking for signs that the modest month-over-month gain in April was the start of a broader rebound, or simply a flat plateau.

The Bank of Canada's June 10 rate decision and the federal government's housing announcements over the coming weeks will also shape the trajectory. Officials have hinted at additional measures to support first-time buyers and renters in the next federal budget update, which is expected in the fall.

For now, the April data tells a story of a market that is no longer falling but is not yet rising decisively. After the volatility of the past several years, that may be the closest thing to good news that Canadian buyers and sellers have seen in some time.