Housing Market Moderates In May, But Prices Forecast to Rise 19.3% This Year

The Canadian housing market moderated in May, with sales and prices easing from their peak in March. However, tight supply and high demand mean that prices are still expected to remain elevated through the year. The Canadian Real Estate Association predicts that average prices will post a 19.3% annual gain to $677,775, followed by a more moderate 0.6% annual gain in 2022. Inventory continued to rise slowly in May, reaching 2.1 months, up from the record low of 1.7 months in March. Despite the slowdown in sales, there is still room for prices to grow until the end of the year. Condos are also making a comeback, with their increasing share in price growth.