The country’s largest housing market quickly turned in the spring of last year when the Bank of Canada launched its campaign to reduce inflation by aggressively raising interest rates.

The typical five-year mortgage now has an interest rate that tops 5 per cent. That is more that double the going rate a year earlier. The higher borrowing costs have priced many prospective buyers out of the market and reduced competition for properties.

Selling prices have found some support in recent months. One reason could be the lack of inventory as homeowners hang onto their properties and postpone potential sales.

Lack of supply has also impacted the rental market. As renting has become more popular in this higher interest rate environment, tighter rental market conditions have translated into double-digit average rent increases.