The housing market in Canada experienced a slight dip in activity in April, according to new data released by the Canada Mortgage and Housing Corporation (CMHC) and the Canadian Real Estate Association (CREA).
The CMHC reported that the annual rate of housing starts decreased by one per cent compared to March 2024, with a drop from 242,267 to 240,229 new homes beginning construction in April. The agency’s six-month average measure of trends also showed a 2.2 per cent decrease in the seasonally adjusted moving average.
In addition, actual new housing construction declined in major cities like Toronto, Vancouver, and Montreal for both multi-unit and single-detached homes compared to the previous year.
Meanwhile, the CREA revealed that home sales in April were down by 1.7 per cent compared to March 2024, although they were higher than the same period last year. The association attributed part of the increase to the Easter holiday falling in March this year, resulting in more business days in April 2024 compared to 2023.
Despite the increase in sales year-over-year, the average sale price dropped by 1.8 per cent to $703,446 in April 2024 compared to the previous year. Additionally, the number of properties for sale increased by 6.5 per cent as the spring real estate season kicked off, marking the highest level since before the onset of the COVID-19 pandemic.
Overall, the data suggests a mixed picture for the Canadian housing market, with a slight slowdown in construction and sales activity in April compared to the previous month.