, the rapid pace of Canada’s housing market rebound has begun to moderate.
The flurry of activity seen throughout the spring, which followed the Bank of Canada’s temporary pause in rate hikes, is “tempering off,” economists have observed.from the Canadian Real Estate Association, national home resales rose just 1.5% month-over-month in June, a sharp drop from the 16.3% increase seen from April to May.
After hitting a 20-year low in March, new listings rose 5.9% on a monthly basis in June. Conditions in most major markets still favour sellers, though. As such, prices continued to rise — just as it did in May, the MLS Home Price Index jumped 2.0% on a monthly basis in June.“We believe the slower pace of resales growth in June marks a shift in Canada’s market recovery,” Robert Hogue, Assistant Chief Economist at RBC, said in.
“We expect the overall trajectory to be flatter through the remainder of 2023, as buyers contend with very challenging affordability conditions and an expected recession.”