The national average home price was $716,683 in June, up 8.6% from a year earlier. However, the pace of price growth has slowed in recent months, as rising interest rates have made it more expensive to borrow money.
“The housing market is still very active, but we’re starting to see some signs of cooling,” said CREA President Jill Oudil. “With interest rates expected to continue to rise, we expect home sales to moderate in the coming months.”
The Bank of Canada raised its benchmark interest rate by 50 basis points in June, and is expected to continue raising rates in the coming months. This is likely to cool the housing market, as it will make it more expensive to borrow money.
However, Oudil said that the housing market is still expected to remain strong in 2023. “We expect home sales to be above 600,000 this year,” she said.
Investors will be watching closely to see how the housing market reacts to rising interest rates. If sales continue to moderate, it could signal that the market is starting to cool. However, if sales remain strong, it could suggest that the market is still resilient.