The Greater Toronto Area housing market continued to show signs of recovery in June. With more listings available, buyers are taking advantage of increased choice and negotiating discounts off asking prices. Combined with lower borrowing costs compared to a year ago, homeownership is becoming a more attainable goal for many households. The monthly increase in sales coupled with the monthly decline in new listings continued the tightening trend experienced during the spring. The average selling price fell to 1.1 million in June, a 5.4 per cent year-over-year decline. A firm trade deal with the United States accompanied by an end to cross-border sabre rattling would go a long way to alleviating a weakened economy and improving consumer confidence. On top of this, additional interest rate cuts would make monthly mortgage payments more comfortable for average households. This could strengthen the momentum experienced over the last few months and provide support for selling prices. If this momentum continues, it may not be long before sales are up year-over-year, which would mark a shift toward a market with more demand than the unusually low demand we’ve seen so far this year. The Bank of Canada’s next interest rate announcement is July 30, and if it cuts its key interest rate, it could provide some additional momentum heading into the fall market.