Canada Housing Research Brief

Housing market remained quiet in May. National home sales decreased by 0.6 per cent month-over-month in May, while new listings ticked up by 0.5 per cent. This contributed to a slight monthly drop in the average sale price of a single-family home. Many potential buyers stayed on the sidelines in anticipation of lower interest rates, while a rising number of sellers entered the market, hoping for renewed demand with speculation surrounding rate cuts. Consequently, the sales-to-new-listings ratio fell to 52.8, maintaining a balanced market that has become more favourable to buyers. On an annual basis, the average sale price of single-family homes fell by 2.2 per cent, driven by a decline in Ontario. This indicates that sales activity in regions with the greatest affordability challenges continued to be disproportionately impacted by elevated interest rates.