The Canadian real estate market showed signs of a significant rebound in May, with home sales posting their first year-over-year increase since June 2021 and the average price experiencing its first year-over-year gain in a year. These findings, released by the Canadian Real Estate Association (CREA), indicate a notable shift away from the sluggish sales and declining prices the country has witnessed in recent times. Let’s delve into the details of this market resurgence and its implications for buyers and sellers.

Seasonally adjusted sales for May reached 40,220, representing a 5.1 percent increase compared to April. This upswing in sales comes after a period of cautiousness among buyers who were waiting for a potential bottom in home prices. However, as they waited, the Bank of Canada implemented interest rate hikes, leading to an increase in mortgage rates. Despite this, buyers are demonstrating greater confidence in the market, as reflected in the surge in sales.