The Canadian Real Estate Association (CREA) reported that home sales edged higher in April but fell year-over-year, suggesting activity is relatively muted amid economic and financial uncertainty. CREA had expected a strong rebound in 2026. However, still elevated mortgage rates, geopolitical tensions and higher consumer prices are dragging down consumer confidence, which could weigh on real estate market activity this year.

• Sales of existing homes in Canada rose by 0.7% in April, which followed a 0.1% decline in the previous month. The benchmark home price dropped by 0.1% over the month, and 4.0% year-over-year.
• On a year-over-year basis, existing home sales dropped by 4.0%. CREA noted there are many buyers taking a wait-and-see approach given rising economic uncertainty.
• The report also showed that new listings rose by 4.1% in April over the previous month, which means more houses on sale as we enter the critical spring market.
• CREA remains confident that the housing market will rebound this year. However, the housing organization cautioned the rebound may be softer than expected in response to still elevated mortgage rates, higher inflationary pressures and economic uncertainty.
• The Canada Mortgage and Housing Corporation is scheduled to release today the number of housing starts in April. Housing starts dipped in March to just under 236,000.

Demand for housing has been relatively jittery in 2026 as geopolitical tensions heighten, leaving Canadians to wonder how that might impact the Canadian economy, prices and interest rates. Canada’s real estate market activity was strong post the COVID-19 pandemic and the years following, but that momentum has lost some steam amid higher interest rates and economic uncertainty. Still, history has shown that Canada’s real estate market has grown over time despite some downturns.

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