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Economic News

Canada: Home Sales Surged in May, Narrowing the Demand-Supply Gap

June 16, 2026
Kari Norman
Senior Economist

Highlights

  • Existing home sales in Canada accelerated 5.5% m/m in May on a seasonally adjusted basis. The seasonally adjusted average national sale price rose 0.7% m/m, while the benchmark price was essentially unchanged. Both measures remain well below their 2022 peaks. Table 1 summarizes key housing market indicators.

Comments

Resale activity rebounded in May, with seasonally adjusted home sales rising 5.5% from April—the largest monthly gain since October 2024—but remaining slightly below seasonal norms. At the same time, new listings declined 1.0% m/m in May, allowing the gap between demand and supply to narrow modestly, though it continues to exceed long-run averages (graph 1). Inventory tightened to 4.8 months from 5.1 months in April. While elevated relative to recent years, inventory remains within longer-term range of roughly 4.5–6.5 months for this time of year. The national sales-to-new-listings ratio held within balanced market territory at 49.2%. Toronto and Vancouver remained in buyer’s market territory, though both are approaching the lower end of being balanced markets, while the Province of Quebec and several other major centres remained balanced.

The average sale price increased 0.7% m/m in May, while the benchmark price was essentially unchanged. If current trends persist, price growth is expected to firm gradually as excess inventory continues to be absorbed.

Regional dynamics remained uneven, with notable seasonally adjusted sales gains in Ontario and Manitoba. Toronto recorded its third consecutive monthly increase in sale prices, though levels remain below those at the end of 2025 (graph 2). Quebec City continues to post outsized gains in both home sales and prices, underpinned by comparatively tighter market conditions and stronger underlying demand.

Implications

The housing market appears to be stabilizing, but macroeconomic uncertainty is likely to keep the pace of recovery gradual. We continue to expect the Bank of Canada to hold policy rates External link. steady through the end of this year, given the need to balance upside risks to inflation from elevated oil prices External link. and elevated downside risk ahead of the Canada-United States-Mexico Agreement (CUSMA) joint review External link.. Looking ahead, the existing home market is expected to post modest gains through the remainder of the year.

NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.