Worries about tariffs and trade tensions may have been unsettling for potential buyers and sellers in the housing market, but data from May 2025 indicates early signs of recovery—suggesting the market may be heating up as summer approaches.
“May 2025 marked the first monthly increase in national home sales in over six months, and national home prices have stopped declining,”
said Shaun Cathcart, Senior Economist at the Canadian Real Estate Association (CREA).
“There’s a general sense that the expected market rebound this year was likely just delayed by the initial disruption and uncertainty caused by tariffs.”
According to CREA’s latest report, national home sales rose 3.6% in May 2025 compared to April, while the number of newly listed properties also increased by 3.1% during the same period.
The report further noted that the growth in May was primarily driven by increased activity in major markets such as the Greater Toronto Area, Calgary, and Ottawa.
Nevertheless, the market remains cooler than in the same period in 2024, largely due to ongoing economic uncertainty—including trade wars—that continue to dampen buyer and seller confidence.
The national average home price in May was 1.8% lower than a year earlier. After adjusting for seasonal factors, the Home Price Index (HPI) showed little change from April.
Many prospective buyers may have remained on the sidelines, waiting for the impact of the trade war to become clearer, while also hoping for greater clarity on the direction of interest rates.
The Bank of Canada is currently maintaining a “wait-and-see” approach and has yet to make a decision on interest rate adjustments. Since interest rate changes directly affect mortgage costs, buyers who had been holding out for lower rates may have begun entering the market in May.
While this data provides encouraging signals for the real estate market, the Canadian Real Estate Association (CREA) emphasized that the analysis is based on national averages. Individual buyers and sellers should still make decisions based on their specific needs and local market conditions.
“Overall, both the number of buyers and sellers in May was higher than in April… and it appears this trend may continue into June,”
said CREA Chair Valérie Paquin.
“If you’re planning to buy or sell in the second half of 2025, understanding whether national trends apply to your local market will be essential.”
News source:https://www.bcbay.com/life/house/2025/06/16/968901.html
