Canada Housing Research Brief

Housing activity continues to recover. Canadian home sales increased 0.5 per cent monthly in June, building on gains in April and May and lifting national activity 7 per cent above March levels. Market conditions tightened modestly as new listings declined 1.3 per cent, pushing the sales-to-new-listings ratio above 50 per cent for the first time this year. Meanwhile, the median price of a single-family home was unchanged from May, marking the third consecutive month of stabilization. Although the benchmark price remained 3.1 per cent below year-ago levels, the pace of decline has narrowed since the start of the year as the market continues to recover. With fixed mortgage rates easing from April peaks and housing conditions improving, the second half of the year will likely continue to strengthen.