The Canadian housing market in May 2025 showed signs of movement but not a dramatic rebound. 

National home sales increased by 3.6% month-over-month, primarily driven by Toronto, Calgary, and Ottawa. However, supply is outpacing demand, with new listings up 3.1% and total active listings up 13.2% year-over-year. The market has entered what's being called a "negotiation market" where buyers have more leverage and choices.

• The market is showing increased activity but remains cautious - sales are up but still 4.3% below last year's levels
• Supply is increasing significantly with the sales-to-new listings ratio at 47%, below the 10-year average of 55%
• Prices are stabilizing with the national average at $691,299, down 1.8% from last May, with significant regional variations - Ontario and BC showing declines while Quebec, Manitoba, and Saskatchewan are seeing increases

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