Canadian Home Sales Rose 5.1% in May, Building on April’s Double-Digit Increase

The Canadian Real Estate Association (CREA) reported Thursday (6-15-23) that home sales posted over the Canadian MLS® Systems were up 5.1% nationally between April and May, building on the double-digit jump in April and smaller gains recorded in February and March.

The actual (not seasonally adjusted) number of transactions came in 1.4% higher year-over-year. While CREA acknowledges this is a small gain, it was notable in that it was the first national year-over-year sales increase since June 2021.

The number of newly listed homes was up 6.8% month-over-month in May; although, in a wider view, the new supply is still running at historically low levels. With sales and new listings up by a similar level in May, the sale-to-new listings ratio was 67.9%, slightly below April’s 69%. The long-term average for this measure is 55.1%.

According to CREA, at the end of May, there was a 3.1-month inventory on a national basis. This is down from 3.3 months at the end of April and down more than a full month from the most recent peak at the end of January. The long-term average for this measure is about five months.

Finally, the Aggregate Composite MLS® Home Price Index (HPI) climbed 2.1% on a month-over-month basis in May—a large increase for a single month and on the heels of a similar gain April.