The demand for ownership housing is stronger than last year, despite higher borrowing costs. The shortage of available homes kept competition among buyers strong and pushed values higher. The average price of a detached home in Toronto was almost $1.8 million in June while the average price of a condo was $770,000.

With sales up compared to June 2022, the number of new listings was down. This combination of increased sales and decreased listings resulted in tighter market conditions in June 2023, in contrast to the corresponding period last year.

Looking forward, the Bank of Canada’s interest rate decision next week and its guidance on inflation and borrowing costs for the remainder of 2023 will help us understand how much sales and price will recover beyond current levels.