Consumers are now anticipating interest rate cuts in the near future. A growing number of homebuyers have also come to terms with higher mortgage rates over the last two years. To minimize higher monthly payments, some buyers have likely saved up a larger down payment, chosen to purchase a less-expensive home type and/or looked to a more price-friendly location in the Greater Toronto Area.

There is now competition for some types of properties, such as houses. Bidding wars are back. Last night, there were 20 offers on one townhouse in the Toronto suburbs. The townhouse was listed for 1.1 million and sold for 1.5 million.

In the second half of the year, lower interest rates will further boost demand for ownership housing. First-time buying activity will also be a contributing factor, as many renters look to trade high monthly rents for a long-term investment in which they can live and build equity.