In April, the Canadian Real Estate Association reported a decrease in home sales compared to the previous year, alongside a rise in the average sale price. Home sales for the month reached 42,927, marking a four percent drop from 44,698 in April 2025. However, on a seasonally adjusted basis, home sales in April increased by 0.7 percent compared to March.
CREA’s senior economist, Shaun Cathcart, mentioned that ongoing global economic uncertainties and higher mortgage rates have tempered the anticipated housing market rebound for this year. Despite the modest increase in home sales from March to April, Cathcart noted a stronger performance at the end of April, with decreasing days on the market and stabilizing prices.
Although there was a bump in real estate activity, sales still lagged about 10 percent below typical April levels, according to BMO chief economist Douglas Porter. The national average home sale price in April stood at $695,412, reflecting a 2.2 percent year-over-year increase. Meanwhile, CREA’s home price index, representing typical home sales, slightly decreased by 0.1 percent from March to April and was down 4.2 percent year-over-year.
New listings in April rose by 4.1 percent compared to the previous month, signaling the start of the traditional spring real estate market. At the end of April, there were 187,647 properties listed for sale across Canada, a 2.2 percent increase from the previous year but 6.1 percent below the long-term average for that time of year.
In a revised forecast, CREA adjusted its 2026 home sales projection to only one percent growth, attributing the change to the impact of the oil price shock on mortgage rates. The association now anticipates a 1.5 percent annual increase in the national average home price to $688,955 in 2026, lower than the initial prediction in January.
The gap between listing and selling prices narrowed in April, indicating potential market movement, as noted by Cathcart. However, Porter highlighted that consumer caution, coupled with rising inflation driven by oil prices, has dampened housing activity, leading to subdued sales and a lack of significant recovery expectations.
Regionally, price declines were observed in British Columbia, Alberta, and Ontario on a year-over-year basis, offsetting gains in other provinces. Notably, Toronto experienced a 6.3 percent drop in average home prices compared to the previous year and a 13 percent decrease from 2023 prices. Porter emphasized that despite regional variations, much of Canada is facing subdued real estate activity.