Home sales across Canada dropped by 9.8 percent in April compared to the same month in 2024, according to the latest data released by the Canadian Real Estate Association (CREA). The decline is the latest indication that the country’s housing market continues to cool, as buyers remain cautious amid ongoing trade tensions and broader economic uncertainty.
Roughly 44,300 residential properties were sold nationwide in April, down from over 49,000 during the same period last year. Month-over-month activity was virtually flat, with a marginal 0.1% decline from March. CREA analysts say the Canadian housing market has largely returned to the subdued levels seen since 2022, when rising interest rates initially pushed many would-be buyers to the sidelines.
Now, a new factor is contributing to the slowdown: uncertainty surrounding the Canada-U.S. trade relationship. Tariff concerns have added to consumer anxiety, particularly in Ontario and British Columbia, where housing activity has already been strained. Both provinces saw notable upticks in housing supply, further softening demand and applying downward pressure on prices.
Nationally, the average home price in April was $679,866, a 3.9 percent drop year-over-year. CREA’s Home Price Index, which aims to reflect the typical home sale, also declined by 1.2 percent compared to March.
The drop in home sales has also coincided with a rise in available inventory. The number of homes listed for sale reached 183,000 by the end of April, up 14.3 percent from the previous year. While this remains slightly below the long-term average, the sharp increase in listings, particularly in Ontario and B.C., points to a shifting market dynamic where supply is beginning to outpace demand.
Home sales in the GTA alone decreased by over 20 percent from the same time last year.
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Compounding the issue is weakness in the condominium market. In cities like Toronto and Vancouver, unsold condo inventory is mounting as investor activity dries up. Rising interest rates have significantly eroded profitability for rental properties, and many pre-construction buyers now find their investments worth less than what they paid.
Despite these headwinds, some economists suggest the market could turn a corner later in the year. Pent-up demand from sidelined buyers, combined with a potential interest rate cut from the Bank of Canada in June, could help reignite activity. However, any recovery is expected to be gradual, with home price growth likely remaining muted for much of 2025.
With inventory building and confidence lagging, Canada’s housing market appears set for a cautious and uneven road ahead, making for an easier entrance to the housing market for first-time home buyers. Buyers can find some of the best opportunities in regions like the Prairies, Quebec and the Atlantic provinces, where affordability remains comparatively strong.
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