08:52 AM EDT, 09/06/2024 (MT Newswires) -- Rate cuts in Canada were doing little to trigger the resale housing market as of August -- no surprise there, said Bank of Montreal (BMO).

Activity in most major markets still looked subdued in the month, with inventory building and prices stagnant, noted the bank.

Toronto sales were down 5.3% y/y in August, while new listings were slightly higher and, importantly, active listings were up by a "meaty" 46%. Suddenly

there's plenty of supply, stated BMO. That is keeping prices in

check, with the MLS benchmark still down 4.6% from a year ago as condos underperform.

The bank continues to believe, and see evidence, that the early stage of the easing cycle will do little to stoke resale demand. That's because lower fixed mortgage rates have already priced in early rate cuts -- which as such offer no real relief.

There's some psychological relief to be sure, but buyers are also seeing plenty of inventory and no price gains -- perhaps declines in some segments), added BMO.