O
TTAWA — Home sales in Canada dropped 9.8 per cent in April compared to the same month last year, marking a return to "quiet markets" seen since 2022. A total of 44,300 residential properties changed hands across the country, down from 49,135 in April 2024.

    On a seasonally adjusted basis, sales ticked down 0.1 per cent from March. CREA senior economist Shaun Cathcart attributed the decline to ongoing uncertainty related to tariffs, similar to how high interest rates affected demand in 2022 and 2023.

    The risk ahead is that a moderate number of sellers could turn into a large number of forced sellers, a scenario not seen in decades, Cathcart warned. New listings fell one per cent month-over-month, with 183,000 properties listed for sale across Canada at the end of April – up 14.3 per cent from last year but still below the long-term average.

    The national average home price dropped 3.9 per cent to $679,866 in April compared to a year ago. CREA's home price index fell 1.2 per cent from March. TD economist Rishi Sondhi described April as "another subdued month" for sales, with economic uncertainty keeping buyers at bay.

    The association has downgraded its forecast for home sales this year, predicting total transactions will be on par with last year – a significant cut from its January forecast of an 8.6 per cent increase in 2025. Sondhi believes the market could see a surge in sales if confidence improves later in the year, but average home price growth is likely to remain sluggish due to loose supply/demand balances in B.C. and Ontario.