“What really sparked things to turn back higher was the pause after January, and people got a little more confident that rates were going to be steady for a while, the push higher was over, and they could have a bit of confidence in that,” he said, “and I think that brought a fair amount of people back into the market.

“You still have that underlying demand, demographics are still good, and immigration is still going to drive demand there. So it’s not as if housing is going to fall off a cliff anytime soon here. But the rebound that we’ve seen might run a little bit out of steam here.”

Sales remain below their 10-year average, he noted, a sign of the lingering impact of the slowdown that gripped the housing market when the Bank embarked on a series of aggressive rate increases throughout 2022.

Which way is the housing market headed?

Amidst the recent resurgence in sales activity, home prices have also stated ticking upwards – but there’s the possibility that the latest hike causes some would-be sellers to list their property sooner, Reitzes said, in the belief that they may not rise much further.

Still, the continued lack of inventory in the housing market means it’s difficult to say for sure where things are headed, he added. “As much as it’s been demand recovering, it’s been a lack of supply that’s really restrained the market and helped push prices higher,” he said.