A recent RBC economics report shows that North American housing prices are still hanging in there, despite higher interest rates. In fact, April data shows that housing activity has seen a major acceleration. The data south of the border is similar, highlighted by the following bullet points. 

• average housing prices in US have fallen only 5% since 2022 peak, which pales in comparison to the 45% slide seen during the worst of the pandemic recession
•  S&P’s composite index of 20 metropolitan area’s housing prices expected to continue rising for the duration of 2023

This could further undermine affordability, in an already difficult market for new home buyers, who are facing a double edged sword of higher borrowing rates, as well as elevated pricing. In the US specifically, the housing stock is not nearly high enough to keep up with demand, with "shortage numbers" in the millions. 

This story will continue to develop.