In the Greater Toronto housing market, the Central and West End of the 416 held up relatively well in terms of average price while Durham, Peel, York, Halton and Dufferin surrendered some of the staggering gains realized in recent years. Preliminary estimates of Q2 median prices in Greater Vancouver’s Squamish area and the Sunshine Coast were comparable to first quarter figures, while West Vancouver and Vancouver West/Howe Sound reported moderate increases.

“Buyer sentiment changed virtually overnight as growing geopolitical concerns and spiralling inflation destabilized global markets, leaving the Bank of Canada little option but to raise interest rates,” says Christopher Alexander, President, RE/MAX Canada. “Those fast and furious incremental increases placed downward pressure on housing sales and prices, improving affordability on one hand, but eroding it on the other.”

“Given that the core has traditionally been more resilient, bolstered by strong demand, a finite supply of homes available for sale, higher household incomes, and greater equity at the top end of the market, the results are not unexpected,” says Alexander. “The price softening was clearly more evident in suburban areas and the outer perimeters of the 416, most of which experienced strong upward momentum during the height of the pandemic as buyers sought to leave the city.”