Canadian home sales flattened in April after months of declines that have rocked the market since the beginning of the year, according to the latest report from the Canadian Real Estate Association (CREA) published Thursday.

Sales fell by 0.1 per cent in April compared to March on a seasonally adjusted basis, with just over 35,000 homes sold across the country.

“At this point, the 2025 Canadian housing story would best be described as a return to the quiet markets we’ve experienced since 2022, with tariff uncertainty taking the place of high interest rates in keeping buyers on the sidelines,” CREA senior economist Shaun Cathcart said in a statement.

CREA said sales declined in Alberta and B.C. by 3.4 per cent and 2.3 per cent respectively from a month earlier, but Ontario posted a 1.1-per-cent increase and Quebec sales rose by 2 per cent.

Sales across the country came in 9.8 per cent below the same month last year. In March, they fell by 9.3 per cent over 2024, the lowest level for the month since 2009.

Anne-Elise Cugliari Allegritti, director of research and communications at Royal LePage, said home sales are expected to continue to be flat in the summer, but could rebound in the fall.

“There’s not a sense of urgency from buyers. There’s a lot of inventory,” she said. “I have my choice. I have the ability to negotiate a little bit. And in reality, prices could even be a little bit lower next month. So why am I rushing today? They’re very much in the driver’s seat.”

She added the new Liberal government would likely play a key role in easing Canadians’ anxiety over the economy, the U.S. tariffs and the housing market, which would spur buyer confidence.

“I’ll be curious to see what the May data shows. I don’t expect anything very surprising, but we could even see a small lift following the election of our own government. That could bring a little bit more confidence back to the market,” she said.

The report shows the number of newly listed properties fell 1 per cent in April compared to a month earlier. The national Home Price Index (HPI) saw a decline of 1.2 per cent in April from March and a drop of 3.6 per cent from April, 2024.

The national average sale price for homes was $679,866 in April, down 3.9 per cent from April, 2024, after falling 3.7 per cent in March compared to a year earlier. Prices remained flat in Ontario and Alberta, but fell 1.1 per cent in the Prairies, 0.9 per cent in B.C. and 3.4 per cent across Atlantic Canada.

TD Bank economist Rishi Sondhi said there is pent-up demand from buyers staying on the sidelines, which was already evident in Ontario and B.C. before the trade war hit Canada.

“Canadian housing markets can surge after lulls, so if confidence improves later in the year [which is our view], the market could see sales pop,” he said.

However, Mr. Sondhi noted the average home price growth in Canada will likely remain subdued for the year as supply and demand in Ontario and B.C. are readjusted.

Despite sluggish sales, housing starts provided an indication of relief for the Canadian market. The annualized rate of new home construction reached more than 278,000 based on activity in April, up 30 per cent from March, marking the largest increase since June, 2023, according to a report from the Canada Mortgage and Housing Corp. (CMHC).

Multifamily housing drove the April increase, with a surge of 34 per cent from March to more than 214,000 units on an annualized basis. Urban single-detached home starts grew by 6 per cent to more than 45,000 units based on annualized numbers.

The CMHC report showed the largest increases in Ontario and B.C., with almost 65,000 units and more than 50,000 houses launched respectively on an annualized basis, followed by Nova Scotia, Prince Edward Island and Alberta. Quebec saw the most significant drop, with 3,000 fewer new homes launched.

Editor’s note: A previous version of this article incorrectly stated annualized rate of housing starts as the number of actual housing starts recorded in the months of April and March. This version has been updated.