BoC lowers interest rates. Hot Summer ahead? - May Real Estate Market Report

The Bank of Canada has lowered the interest rates and reduced the Overnight Lending Rate by 25 basis points to 4.75%. This is the first rate drop since March 2020 and comes highly anticipated after a total of 10 rate hikes in the past couple of years (from 0.25% to 5.00%).

Many Buyers have been on the sidelines since and been waiting for a positive signal from the Bank of Canada. Today's announcement could fuel our Real Estate Market that has been rather slow since those rate hikes.

Aurora: High Prices, Low Sales

Although prices have been established at quite a high level, the amount of Sales has been down. Only 73 homes have sold in Aurora in May. This is the lowest number of transactions in this usually very busy month since 1999 (with the exception of May 2020 during Covid).

The average price in Aurora on the other hand was second highest ever for the month of May at $1,443,822. That's 1.8% higher than last year. In Newmarket the average price for a home was $1,173,306 - 6% lower on a year-over-year basis. Prices in East Gwillimbury (avg. $1,290,349 // -7.2%) and Bradford (avg. $1,133,122 // -1.7%) have also decreased a little.

Not much change in York Region

In all of York Region prices increased by 1% compared to last month from $1,326,533 to now $1,340,032. On a year-over-year basis the current prices are slightly lower (-2.8%).

(Data Source: TRREB Market Watch)

Throughout Toronto and the GTA the average price in May was $1,165,691. That reflects a decrease of 2.5% compared to last year. A total of 7013 Sales were reported on the Toronto Real Estate Board's MLS System, 21.7% less than last year.