The last month of housing market activity before the Bank of Canada’s interest rate cut in early June saw sluggish sales in May. Recently released CREA figures showed a marginal 0.6% climb in national home sales for May, with actual activity down 5.9% year over year, and the MLS Home Price Index dipping by 2.4%.

Despite these figures, the central bank’s 25-basis-point cut on June 5 has revived optimism for a housing market uptick in the second half of the year. A recent BMO survey found that 62% of respondents still view owning a home as one of their biggest aspirations, even amid challenging conditions.

Samantha Villiard, regional VP at RE/MAX Canada, highlighted the jump in condo purchases by first-time homebuyers in Toronto as a positive trend. She believes the rate cut could spur more buyers to step off the sidelines and enter the market.

“With the reduction, I anticipate pent-up demand will be ready to go,” Villiard said. “The interest rates being reduced even a small amount can lead to price increases, benefiting sellers and moving towards a more balanced market.”

Confidence is returning to the housing and mortgage markets. Villiard is optimistic about a stronger housing market in the second half of the year, as the rate-hiking days fade into memory.