07:01 AM EDT, 06/05/2025 (MT Newswires) -- May resale housing results are in from Toronto and Vancouver, while various other cities are trickling out, said Bank of Montreal (BMO), adding it will focus on the first two given they are facing some of the tougher conditions in Canada.

The short story is that conditions remained difficult in those

markets in May, but they are at least not getting any worse, noted the bank.

Sales were down 13.3% year over year in Toronto and 18.5% year over year in Vancouver, while prices were down from a year ago (4.5% and 2.9%, respectively) in both markets.

Indeed, buyers are still in control, with the sales-to-new listings ratio still tracking below 40% in both markets, pointed out BMO.

Wednesday's Bank of Canada decision to leave rates on hold again keeps variable mortgage rates in place around the 4.25%-to-4.50% level. That continues to leave the lowest-available mortgage rate, which is currently five-year fixed, around the 4% mark, and recent action in the bond market -- five-year Government of Canada yields a drifting up since early-April -- points to little further relief there, either, added the bank.

The bank stated it has been suggesting for a while that a break in mortgage rates meaningfully below 4% would put some life into the market, but Canada still isn't there yet.