May's housing market maintained low sales levels, continuing the trend from last spring's brief surge in activity. Prospective home buyers are still holding out for lower mortgage rates, while current homeowners are anticipating a rise in demand, as shown by a year-over-year increase in new listings. This increase in available homes has given buyers more room to negotiate prices.

According to recent Ipsos polling, many home buyers are awaiting clear signs of decreasing mortgage rates. As borrowing costs are expected to drop over the next 18 months, the market should see an influx of buyers, particularly first-time purchasers. This will help alleviate the pressure on a currently tight rental market.

While interest rates remained high in May, buyers benefitted from slightly lower selling prices compared to last year. Selling prices have adjusted to counteract the effects of higher mortgage rates, and affordability is anticipated to improve further as borrowing costs decrease. However, as demand rises, we can expect upward pressure on home prices due to increased buyer competition.

For the long-term affordability and livability of our region, a coordinated effort from all levels of government is necessary to address the housing deficit and accommodate new population growth. Additionally, governments must ensure the delivery of infrastructure to support this growth. The region's economic health and livability depend on the timely completion of public transit projects and increased transparency.

If you're looking to navigate the current housing market with confidence, now is the perfect time to seek expert advice. Contact me today!