According to the Canadian Real Estate Association (CREA), only 44,300 residential properties changed hands last month. This is down from 49,135 in April 2024. On a month-over-month basis, sales fell a modest 0.1 per cent, continuing the trend of cautious consumer behaviour in the real estate market.
The slowdown comes as Canadians grapple with broader economic concerns, particularly uncertainty surrounding trade relations with the United States. Current trade tensions have left many potential buyers hesitant to enter the market. Fears of home values falling or job security being threatened by changing economic policies contributed to weakened demand.
This cautious sentiment is particularly evident in major markets like Vancouver. Here, inventory levels have been growing steadily, but buyer activity has stalled. As a result, properties are sitting longer on the market, and sellers are adjusting expectations. New listings declined by one per cent from March, while total active listings at the end of April reached 183,000.
Increasing inventory levels are driven mainly by Ontario and British Columbia. Other provinces continue to experience tighter supply conditions. Analysts warn that a shift from a typical number of sellers to a scenario where more homeowners are compelled to sell due to economic pressure could lead to further market instability.
Home prices have also taken a hit. The national average sale price for a home in April was $679,866. This figure marks a 3.9 per cent year-over-year decrease. CREA’s Home Price Index slipped 1.2 per cent from March, reflecting the broader softness in pricing nationwide.
This cooling trend in the housing market prompted CREA to revise its 2025 forecast. In January, the association projected an 8.6 per cent increase in home sales for the year. It now expects activity to remain in line with 2024 levels.
Economists suggest that there is potential for a rebound later in the year, with demand already beginning to build in key regions such as Ontario and B.C. Prior to recent economic headwinds, a boost in consumer confidence could unlock significant pent-up demand. Historically, Canadian housing markets have demonstrated the ability to bounce back after periods of stagnation.
However, home price growth is expected to remain muted, particularly in areas where the balance between supply and demand is notably loose. Until clearer economic signals emerge and policy uncertainty is resolved, buyers and sellers appear likely to remain cautious.
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