Housing market update: June 2023

Month-on-month price and inventory increases suggest that the housing market is beginning to recover from its slow start to the spring season. As the gap between demand and supply widens, sellers could expect higher profits than they did between January and March of 2023. Meanwhile, landlords and property managers must content themselves with at least maintaining their current rental prices.

• The Canada Mortgage and Housing Corporation reports that total housing starts increased 22% from March to 261,559 in April. The affordable housing shortage is ongoing, with just 3.3 months' supply nationwide, so any increase in construction is eagerly anticipated.

• The Canadian Real Estate Association’s (CREA) monthly Multiple Listing Service (MLS) Home Price Index showed a 1.6% month-on-month rise in April, bringing the national average home price up to $716,000. However, prices were still down 12.3% year-over-year.

• CREA also reports an 11.3% increase in month-over-month home sales in April. Similarly, however, sales were 19.5% below April 2022, and new home listings were also at a 20-year low.

• According to a report from Rentals.ca, the average national asking rent remained virtually unchanged from March to April at $2,002. That is a 9.6% increase year-over-year and 20% higher than April 2021.

• The survey found that 8 of the 10 cities with the highest rents were in Ontario, and that two-bedroom unit rents in Toronto broke the $3,000 barrier for the first time ever. Even if rising costs deter some renters or homebuyers, real estate will always be in demand in major metros.

More housing market headlines

Landlord Tenant Board “fundamentally failing”, says new report – PayProp

More Canadian cities are turning office towers into homes to save their downtown cores – Financial Post

1 in 5 properties across much of Canada are owned by investors. That makes it harder for 1st-time buyers – CBC