Interest rates have finally dropped for the first time in a few years, but will it be enough to stimulate the slow market? That remains to be seen. We'll have a better idea if the rate drop is causing more buyers to re-enter the market as the month progresses.

May 2024 was relatively unexciting for real estate stats, with most categories coming in just below 10-year averages. Prices remained stable as inventory numbers grew to the highest level in almost five years. Sales were seasonally slow, with 1,339 homes sold in May 2024—just 2% higher than April 2024, 13% fewer than May 2023, and 21% fewer than the 10-year average for May.

Despite a 7% decrease in new listings compared to April 2024, May's 3,187 new listings were 10% higher than the 10-year average, helping to build inventory and keep the market stable. May 2024 ended with 5,999 homes available for sale, the most since September 2019. This increase in supply could help stabilize prices as rates drop and more buyers return.

Many in the business, myself included, have predicted that prices will increase as rates fall. However, this may not be the case or at least not drastically. Inventory numbers have been steadily increasing, and many sellers are waiting for rates to drop, hoping to sell at a higher price.

The future of housing prices will depend on several factors in the coming months: Will interest rates continue to drop? By how much? Will increased sales lead to more new listings, keeping inventory levels up, or will buyers deplete the active inventory, pushing prices higher? The market activity over the next month and the July 24 rate announcement will provide more clarity. For now, it appears the market will gradually pick up, maintaining a healthy position with steady, predictable growth.

In May 2024, 22 homes sold for every 100 listed, indicating a seller's market but on the cusp of a balanced market. A buyer's market is defined by 12 or fewer homes selling for every 100 listed, a balanced market by 12-20 homes, and a seller's market by more than 20 homes. Detached homes were in a balanced market with 18/100 homes selling, while condos and townhomes were in seller's markets with 24/100 and 30/100, respectively. The decrease in condo and townhome sales ratios from April to May could be influenced by the new AirBnB regulations, which have likely increased the number of attached homes on the market.

My main advice remains: The best time to make a move is when it makes sense for you. Timing the market is nearly impossible, and if you're looking to sell and buy, the timing is relative. If you're looking to buy, it may be a good time to enter the market before prices inevitably increase. If you're looking to sell, waiting could be beneficial, but the duration of the wait is uncertain.