The average price of a house in Canada continues to climb and the latest increase might be discouraging for prospective home buyers.

According to a new report from the Canadian Real Estate Association (CREA), the national average home price jumped to $668,754 in July. That's a 6.3 per cent increase from July 2022.

This comes alongside the largest increase in home sales year-over-year in July in more than two years.

"July continued along the same trend we've seen emerge in recent months, with sales levelling off and new listings returning in more normal numbers," said Larry Cerqua, the chair of the CREA, in a statement. "This has been giving buyers more choice and balancing the market, which as of July was also slowing the rate of price growth."

Statistics released today by the CREA show national home sales were only slightly changed on a month-over-month basis in July 2023.

The change in home sales between June and July was tiny as it edged down to 0.7 per cent, according to the report.

It attributed this to the slight decline in home sales in the Greater Toronto Area (GTA). Sales were also down in the Fraser Valley, which "together with the GTA off set gains in Montreal, Edmonton and Calgary."

"Sales and price growth are already showing signs of tapering off further in August in response to the Bank of Canada's mid-July rate hike and messaging regarding above-target inflation for longer than previously expected," explained Shaun Cathcart, CREA's senior economist, in the report.

"We're probably looking at another round of 'back to the sidelines' for some buyers until there's a higher level of certainty around interest rates going forward."

Luckily for prospective home buyers, the number of newly listed properties was up by 5.6 per cent in July compared to June.

Unfortunately, with the national average price nearing $700,000, they may be feeling the pinch to be able to afford their first home.

And renting has become a struggle too, with average prices reaching an all-time high.

There are still places in Canada where anyone making a median income can afford a house, according to a recent report from Zoocasa.