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Canadian home prices hit a new high last month – even as many of the country's markets cooled off.

Prices rose 5.1 per cent in June from a year earlier, according to the Teranet-National Bank home price index, released Tuesday. While the index climbed to a record level, only three markets – Vancouver, Toronto and Hamilton – reached their own peaks. Home prices in Vancouver rose 8.5 per cent from a year ago, while prices in Toronto and Hamilton increased 7.8 per cent and 5.5 per cent, respectively. In a sub-index of eight other metropolitan areas, prices nudged 1 per cent higher.

"With residential mortgage rates likely to edge lower in the months ahead on a potential 25-basis-point rate cut from the Bank of Canada [Wednesday], we wouldn't be surprised to see house prices edge dangerously higher in Toronto and Vancouver over the near-term," said David Madani of Capital Economics in a note following the Teranet release.