Following the recovery of the residential housing market in recent months, the Teranet-National Bank composite HPI jumped 2.2% from May to June, marking the third consecutive monthly increase, but also the largest price rise in a single month since November 2006. After a cumulative decline of 8.7% since peaking in April 2022, recent rises in the composite index have erased part of this correction, which now stands at just 6.2%. This rebound is even more impressive given that 81% of cities covered in June saw an increase during the month, the best diffusion of growth since the composite index peaked last year. While prices may continue to be supported by strong demographic growth and the lack of supply of properties on the market to continue their progression in the third quarter, the Bank of Canada’s recent rate hikes and the economic weakness expected in subsequent quarters will represent a headwind for house prices thereafter.