High interest rates stall Canadian housing market in May

Homebuyers in Canada continued to play the waiting game in May, with home resales and prices changing little nationwide, dipping by 0.6% and 0.2% from the previous month. High interest rates and poor affordability have stalled the market, but a potential rate cut by the Bank of Canada in June might prompt buyers to act.

Meanwhile, inventory levels have rebounded to pre-pandemic levels, with new listings rising for the fourth time this year in May. Supply-demand conditions now favor buyers in many markets, leading to slight price declines in some areas, including the Greater Toronto Area. However, the Prairie provinces remain active, with significant price increases noted in Calgary and Edmonton.