Around 70% of all local markets saw sales increase in May, while the average national home price ticked 2.1% higher on a monthly basis (but was down 8.6% year over year).

That continuing rebound arrived with the Bank of Canada having paused its series of rate hikes between March and June – but it remains to be seen how market activity will be impacted by its decision to increase rates again last week.

The long-standing inventory shortage in Canada’s housing market will also continue to play a significant role in the market’s future trajectory, according to CREA chair Larry Cerqua.

“The degree to which a recovery will be able to play out on the sales side as opposed to the price side will come down to supply, which remains quite low,” he said.

The association’s senior economist Shaun Cathcart also highlighted the lingering supply-demand imbalance. “Without existing owners supplying the market with new listings, this housing demand rebound may play out more acutely than might have been expected on the price side this year,” he said.