April sees a decrease in both home sales and new home construction

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Home sales and new home construction both drop in April



“Canada Sees a Slight Dip in Housing Starts and Home Sales”

The housing market in Canada experienced a slight decline in both housing starts and home sales in April 2024. According to reports from the Canada Mortgage and Housing Corporation (CMHC) and the Canadian Real Estate Association (CREA), the annual rate of housing starts dropped by one per cent compared to March 2024, while residential home sales also decreased during the same period.

### CMHC Reports Decline in Housing Starts
The CMHC, Canada’s national housing agency, revealed that the annual rate of housing starts decreased from 242,267 in March to 240,229 in April. The agency’s six-month average measure of trends also showed a drop, with a 2.2 per cent decrease in the seasonally adjusted moving average over that period. Furthermore, new housing construction in major cities like Toronto, Vancouver, and Montreal saw a decline in both multi-unit and single-detached homes compared to the previous year.

### Real Estate Sales Down Month-Over-Month
Simultaneously, CREA reported a 1.7 per cent decline in home sales in April compared to March 2024. However, despite the month-over-month decrease, home sales were still higher than the same period last year. CREA attributed part of the more than 10 per cent increase over last year to the timing of the Easter holiday weekend in 2024, which led to a few more business days for transactions compared to 2023.

While the number of properties up for sale increased in April as the spring real estate season commenced, the average sale price dropped by 1.8 per cent compared to the previous year, settling at $703,446. This combination of lower sales and increased listings resulted in a 6.5 per cent rise in overall property inventory, reaching levels not seen since before the onset of the COVID-19 pandemic.

In conclusion, the slight decrease in housing starts and home sales in Canada raises questions about the stability and sustainability of the real estate market. As economic conditions continue to evolve, it will be crucial for industry stakeholders to monitor these trends closely and adapt their strategies accordingly to navigate potential challenges on the horizon.”



Reference

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