That warning could be set to weigh against a housing market resurgence for the remainder of the year. In Toronto, traditionally one of Canada’s two hottest markets alongside Vancouver, a lack of clarity over the prospect of further rate hikes will probably give many buyers and sellers pause for thought in the coming months, according to the city’s real estate board.

“In the short term, we will likely continue to see some volatility in terms of sales and home prices, as buyers and sellers wait for more certainty on the direction of borrowing costs and the overall economy,” Toronto Regional Real Estate Board (TRREB) president Paul Baron said in the release of the city’s latest housing market statistics.

Toronto-based broker Sung Lee (pictured top) of Swivel Mortgage told Canadian Mortgage Professional prior to Wednesday’s Bank of Canada announcement that the outlook remained “a bit foggy” on the likely direction of rates for the remainder of the year, with little indication that things will remain steady for the rest of 2023.

“It’s a strange time because it’s gone from what we saw as a sellers’ market to a bit more of a balanced market, and now it seems to be trending towards more of a buyers’ market,” he said.

“Until we have a clearer view of what is going to happen with rates in terms of when it’s finally going to stabilize, and then eventually come down, I don’t expect a huge uptick for both the real estate and mortgage markets.”