How Canadian Home Prices Have Changed Since Interest Rate Hikes Began
However, with more homes on the market in June, there has been a “sharp” rebalancing of demand-supply conditions, which Hogue and Battaglia predict will lead the pace of appreciation to slow in the coming months. But, amid high interest rates, affordability will remain “extremely challenging.”In Vancouver, it appears that rising prices — the benchmark price for the city jumped 1.3% month over month in June following a cumulative 3.
With more balance in the market, Hogue and Battaglia believe buyers will continue to push back on further price appreciation in the months ahead. However, housing affordability remains at “crisis levels” in Vancouver, posing “huge challenges” for many buyers.While buyers have withdrawn in what were already largely unattainable markets, they have been relatively unfazed in more affordable locales.
With demand and supply seeing similar levels of recovery, home prices were relatively unchanged in June on a monthly basis. As such, there is room for a gradual appreciation in the months ahead.In contrast to their counterparts in Toronto and Vancouver, buyers in Calgary are “eager” to transact. The city has seen a significant increase in new listings over the past two months, and, after rising 6% month over month in May, resales jumped an estimated 9% in June.