Canadian Home Sales Mark Sharpest Rebound in Nearly Two Years

The Canadian Real Estate Association reported that while unadjusted sales remain 5.1% lower than a year ago, the month-over-month growth suggests a narrowing gap between buyer and seller expectations. Benchmark house prices dipped 0.1% in May, marking the smallest decline since January 2025. Economists suggest the market is moving past its most destructive phase, with pent-up demand finally beginning to meet lower price points.

Robert Kavcic, an economist at BMO Capital Markets, noted that single-family homes, in particular, appear to be stabilizing. This shift is echoed in regional data, where early figures from British Columbia suggest the momentum carried into June. In Vancouver, sales are currently on track for their strongest June performance in three years. Despite these gains, the broader landscape remains challenging, with residential investment falling 7.9% in the first quarter of 2026. The Bank of Canada is now banking on this newfound housing stability to help foster a broader economic recovery following two consecutive quarters of contraction.