Home Sales Up 3.6% in May, And 62% of Canadians See Homeownership as Part of Retirement Plan

This week’s top real estate stories.

By Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week. 

Condo Inventory Bloat Weighs Down National Home Values

If Canada’s housing market is a group project, the condo segment is totally phoning it in. According to our latest data, home values have seen decent growth in the face of widespread economic challenges over the last two years. According to the RPS-Wahi House Price Index, they were up 1% nationally in May compared to last year, representing the smallest annual increase since August of 2023. That, however, comes despite a major 7% annual drop in condo values, largely driven by Toronto and Vancouver, which ties the record for steepest decline since we started tracking the data in 2005.

From Worse to Bad  

Canada’s housing market is still bad, just not as bad as last month. That’s according to the Canadian Real Estate Association’s latest report, which found that home sales were up 3.6% in May compared to April, representing the first uptick in activity since the fall. Gains over the last month were largely driven by growth in Toronto, Calgary and Ottawa. It’s still too early to start celebrating a recovery, as sales were down 4.3% compared to May of 2024. However, the first month of sales growth in 2025 may suggest the worst of the market downturn is behind us.

New Home Construction Leaves Downtown  

Don’t let the continent-leading number of cranes dotting the Toronto skyline fool you. According to CMHC, housing construction is on the decline, down 0.2% in May compared to the month before, driven by drop-offs in the Toronto and Vancouver condo markets. Housing starts overall have remained relatively flat over the last six months but were up 9% in areas with a population over 10,000 in May compared to last year. Much of the growth is attributed to single-detached and purpose-built rentals in Quebec and the Prairies, which are making up ground lost to Toronto and Vancouver condo construction declines.

Aging with Place  

More Canadians are putting all their nest eggs in one basket — and living in it. According to a new report by Healthcare of Ontario Pension Plan (HOOPP), 62% say homeownership is a “key part” of their retirement strategy, with 42% planning to sell to finance their golden years, up from 38% in 2023. A third also said they would re-mortgage to fund retirement, and 65% worry they’ll still be paying down the debt after they leave the workforce, up from 51% last year. The authors warn that the plan could backfire if the market’s timing doesn’t align with their plans.   

Six Figures Now Constitutes “Poor” in the Six  

Earning six figures used to mean a two-car garage and maybe a cottage: now it’s barely enough to cover a condo in Toronto. According to a new report by CivicAction, those earning between $40,000 and $125,000 have become “the invisible poor” in the GTHA, spending between 45% and 63% of their income on housing, way beyond the recommended 30%. According to the study, the working middle class — which includes essential workers like teachers and nurses — can’t keep up with skyrocketing housing costs and may be pushed out of the region as a result, despite gainful employment in vital sectors. 

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