The Canadian housing market saw some sales growth in June, but overall activity remains subdued, with the Bank of Canada’s 25 basis point rate cut doing little to boost demand, according to the Canadian Real Estate Association (CREA).

CREA said home sales rose 3.7% from May to June, but fell 9.4% year-over-year last month.

On a seasonally adjusted basis, the national median home price was $696,179, down 0.4% from May and 1.6% from a year ago.

“All indications are that the housing market has barely responded to the first rate cut,” said Robert Kavcic, chief economist at BMO.

“This could be good news for the Bank of Canada, as the market is resilient to further rate cuts. But for buyers, the return to affordability remains too slow, and families continue to wait."

The number of new homes listed for sale in June rose 1.5% from the previous month, according to CREA statistics, mostly in the Greater Toronto Area and Lower Mainland in British Columbia, reaching 180,000 units. That's up 26% from last year, but still below the historic 200,000-unit level.

Anastasia Chupina