The Canadian Real Estate Association says home sales in June were down from a year ago, even as the average Canadian home price increased by 4.8 per cent.
Sales were down 0.6 per cent from the same time a year ago, but increased 3.3 per cent from May, according to the association.
"The Canadian existing home market has almost fully shaken off the negative impact from tighter mortgage insurance rules implemented almost a year ago," Diana Petramala, economist with TD Economics, said in a note.
"While rising rates may temper demand in the months ahead, the strength in home sales over the last four months helps to ease concerns that the Canadian housing market is headed for a deeper correction."
[custom]So far this year, 240,068 homes have sold in Canada this year through the association's multiple listing service, down 6.9 per cent from the first half of 2012.
When compared with sales last June, Toronto and Montreal saw fewer sales, while Western markets including Vancouver, Calgary, and Edmonton were up.
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