The Canadian Real Estate Association reported a decline in home sales in April compared to the previous year, alongside a rise in the average sale price. Total home sales for April were 42,927, down by four percent from 44,698 in April 2025. However, on a seasonally adjusted basis, home sales in April increased by 0.7 percent compared to March this year.
CREA’s senior economist, Shaun Cathcart, noted that global economic uncertainty and higher mortgage rates have tempered the expected housing market rebound this year. Despite the modest increase in home sales from March to April, Cathcart highlighted a slow start to the month with a more robust transition into May. BMO chief economist Douglas Porter added that sales are still around 10 percent below normal April levels, indicating ongoing challenges in the housing market.
The national average sale price of a home in April was $695,412, marking a 2.2 percent year-over-year increase. However, CREA’s home price index, designed to reflect typical home sales, saw a 0.1 percent decrease between March and April, with a 4.2 percent drop on a year-over-year basis. New listings in April rose by 4.1 percent month-over-month, signaling the traditional beginning of the spring real estate market.
CREA also revised its 2026 forecast for home sales activity, now predicting only one percent growth compared to the previously expected 5.1 percent due to the impact of the oil price shock on mortgage rates. The forecast 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 narrowing gap between listing prices and actual selling prices in April could stimulate market movement, according to Cathcart.
Porter highlighted that the latest trends indicate a more subdued recovery in Canadian housing activity due to consumer caution amid rising inflation driven by oil prices. Regionally, while prices declined in British Columbia, Alberta, and Ontario on a year-over-year basis, other provinces saw gains. In Toronto, the average home price dropped by 6.3 percent compared to last year and 13 percent compared to 2023 prices, reflecting the overall subdued market conditions across the country.
