Home Sales in Canada, Average Price Drop in April, Real Estate News, ET RealEstate
Home sales in Canada fell 12.5% in April from March, while the average selling price was down 2.9% in April from the previous month, according to Association data. Canadian Real Estate Agency (ACI).
Housing starts, meanwhile, fell 19.8% in April from March due to a sharp drop in urban housing starts, although housing starts remain well above levels. before the pandemic, according to separate data from the Canada Mortgage and Housing Corporation (CMHC).
“While housing markets across Canada remain very active, it is increasingly evident that some of the extreme imbalances of the past year are starting to dissipate,” said ACI President Cliff Stevenson in a statement.
Stevenson added that the drop in sales came amid a third wave of COVID-19 cases and new restrictions, which could somewhat obscure underlying levels of supply and demand.
The Canadian housing market has been in shambles in recent months, with house prices climbing sharply due to investor activity and fear of missing out. Even small towns and villages struggle with searing markets usually reserved for large urban centers.
Actual sales, not seasonally adjusted, were up 256% in April from a year earlier, CREA said. Sales and prices in April 2020 were strongly affected by the first wave of COVID-19 and a hard shutdown nationwide.
The national average selling price of a Canadian home was C $ 696,000 ($ 575,064) in April, down 2.9% from March, but up 41.9% from a year ago early – again skewed by the “base effect” of the April 2020 decline, the industry group mentioned.
The ACI Home Price Index, which dampens average price swings, rose 23.1% for the year and 2.4% from March.
The seasonally adjusted annualized housing starts rate fell to 268,631 units in April, from a revised 334,759 units the month before, CMHC said. Analysts were forecasting 280,000 unit starts in April.
“Housing starts remained warm in April, but not the scorching heat of March,” said Royce Mendes, senior economist at CIBC Capital Markets, adding that housing starts may continue to slow due to high construction costs and rising interest rates.