Residential Market Commentary - The Spring Market Begins to Sprout

Canada’s spring real estate market is showing some green shoots but there are no predictions of a bumper crop.

The Canadian Real Estate Association is taking some comfort from a modest 0.7% increase in home sales from March to April.  Nearly 427,000 properties changed hands, which suggests some stabilization, but activity is 4.2% lower than it was in April of 2025. 

The national average home price rose 2.2% year-over-year and sits at a little more than $695,000.  However, CREA’s preferred measure of home prices, the MLS Home Price Index, edged down 0.1% from March and came in 4.0% below April of 2025.  Prices, which are shifting across the country, were pulled down by values in British Columbia and Ontario. 

Growth in new listings is encouraging improved affordability.  New listings increased 4.1% month-over-month in April, tipping the national sales-to-new listing ratio further in favour of buyers at 45.6%.  The long-term average is 54.8%.  A national sales-to-new listings ratio between 45% and 60% is considered balanced. 

There were nearly 188,000 properties listed for sale in Canada at the end of April 2026, up 2.2% from a year earlier.  But that is 6.1% below the long-term average for this time of the year. 

Generally stable prices, better selection and interest rates that appear to be at the bottom of their cycle may be enough to draw buyers back into the market.  But global uncertainty continues to weigh on consumer confidence.  It may take a few more months for the market to show a clear direction.

- First National