Economic uncertainty is definitely taking a toll on Canada’s real estate market, and the traditional “spring market” has not materialized.
The April report from the Canadian Real Estate Association shows the market drifting back into the malaise of the pandemic era.
“At this point, the 2025 Canadian housing story would best be described as a return to the quiet markets we’ve experienced since 2022, with tariff uncertainty taking the place of high interest rates in keeping buyers on the sidelines,” said CREA’s Senior Economist, Shaun Cathcart.
April sales were flat (-0.1%) compared to March and down 9.8% from April of 2024. Prices are also trailing off. The national average home price dipped 3.9% – to a little less than $680,000 – compared to a year earlier. CREA’s preferred measure of price, the National Composite MLS Home Price Index (HPI), declined by 1.2% from March and was down 3.6% year-over-year.
Even though there was a 1.0% decline in the number of new listings in April, the supply of homes for sale is getting bigger. The sales-to-new listings ratio is 46.8%, up slightly from March. The national market is still considered to be statistically balanced but it is definitely leaning on the buyer-friendly end of the scale. The numbers are deceptive though. B.C. and Ontario have the highest inventories while most of the rest of the country is very tight.
There are 183,000 properties listed across Canada, up more than 14% from a year ago.