Canada real estate: Home sales down in May, listings up slightly amid 'sleepy month'

In May, home sales in Canada dropped by 0.6% from April and were down 5.9% compared to last year, as reported by the Canadian Real Estate Association (CREA). The average home price decreased to $699,117, marking a 4% annual decline. However, new listings saw a slight increase of 0.5%, continuing a two-month upward trend.

Despite this uptick in listings, CREA described May as a "sleepy month" for the housing market. Economists noted that while a recent interest rate cut by the Bank of Canada might have a psychological impact, it hasn't significantly boosted affordability yet.

Sales varied across regions, with British Columbia and Alberta experiencing increases, while Ontario and Quebec saw declines. Looking ahead, experts anticipate that further interest rate reductions may eventually revive the housing market in the latter half of 2024.

This ongoing cautious market scenario reflects broader economic conditions and the potential for more adjustments depending on future inflation and interest rate trends   .