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According to a CBC News article, the Canadian Real Estate Association (CREA) reported that home sales in Canada declined in May 2025, marking a significant slowdown in the housing market. Sales dropped by 5.1% compared to the previous month, with 43% of local markets experiencing declines. This downturn is attributed to higher borrowing costs, which have deterred potential buyers and led to reduced activity in the housing sector.
Despite the overall decline, some regions, particularly in British Columbia and Ontario, saw modest increases in sales. However, these gains were insufficient to offset the broader national downturn. The CREA's Home Price Index also showed a slight decrease in home prices, indicating a cooling trend in the market.
Looking ahead, CREA's Chief Economist, Shaun Cathcart, suggested that the market may continue to face challenges due to ongoing high borrowing costs. He noted that while some buyers are still active, the overall market sentiment remains cautious. The association anticipates that the housing market will stabilize in the coming months, but the pace of recovery will depend on various economic factors, including interest rates and consumer confidence.
Read the full article on: CBC
