Greater Toronto Area (GTA) and Metro Vancouver home sales continued to cool in June compared to the frenzied pace earlier in the year, but prices still went up.
The Toronto Regional Real Estate Board (TRREB) says 11,106 homes were sold in the GTA in June, which is 28.5 per cent more compared to June 2020. But sales were down 7.6 per cent compared to the previous month.
TRREB says the slowdown could be short-lived.
"We have seen market activity transition from a record pace to a robust pace over the last three months. While this could provide some relief for homebuyers in the near term, a resumption of population growth based on immigration is only months away."
"While the primary focus of policymakers has been artificially curbing demand, the only long-term solution to affordability is increasing supply to accommodate perpetual housing needs in a growing region," said TRREB president Kevin Crigger.
Prices for all property types, meanwhile, as measured by the home price index, are up nearly 20 per cent year over year and 0.4 per cent month over month to $1,050,300. TRREB says the low-rise segment has been a key driver of price increases but notes condominiums are up more than 8 per cent year over year.
A similar story is playing out in Vancouver. The Real Estate Board of Greater Vancouver (REBGV) says 3,762 homes were sold in June, a 54 per cent increase compared to June 2020. But 11.9 per cent fewer homes were sold compared to the previous month.
The home price index for all residential properties in Metro Vancouver was up 14.5 per cent year over year and 0.2 per cent month over month to $1,175,100.
Like the GTA, the low-rise segment has pushed prices higher and condos are up nearly 8.9 per cent year over year.
But the REBGV says price growth might have peaked for now.
"With low interest rates, a growing economy and an improving job market, the Metro Vancouver housing market continues to enjoy solid economic fundamentals," said REBGV economist Keith Stewart.
"We're now seeing a market that's beginning to normalize from the torrid pace in the spring. This is making multiple offers less common, allowing subjects to be seen on offers more frequently again, and is making new price records less likely."
Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.