The Canadian Real Estate Association (CREA) recently released statistics showing a significant drop in national home sales and slight increases in listings and home prices for May.

CREA released its new statics, which compare April to May, show a 6.2 per cent drop in home sales. This is the largest decline in sales since August 2012, according to CREA.

Sales were down in approximately half of the local markets compared to the previous month, with the greatest decline in the greater Toronto area, the report shows.

"Recent changes to housing policy in Ontario have quickly caused sales and listings to become more balanced in the GTA," CREA President Andrew Peck said in a press release. "Meanwhile, the balance between supply and demand in Vancouver is tightening up, while many places elsewhere in Canada remain amply supplied."

CREA’s chief economist, Gregory Klump, said the statics reflect Ontario’s recent changes in housing policy.

"This is the first full month of results since changes to Ontario housing policy made in late April,” Klump said.  “They provide clear evidence that the changes have resulted in more balanced housing markets throughout the Greater Golden Horseshoe region.”

CREA’s report was based on the Multiple Listing Service Home Price Index and the number of homes sold through Canadian MLS Systems.