In May, new home construction in Canada saw a significant rise, with housing starts increasing by 10% compared to the previous month. This growth was primarily driven by multi-unit projects, such as condominiums, which surged by 13%, while single-unit starts saw a modest increase of 2%. Major contributions came from cities like Montreal and Toronto, which experienced substantial increases in construction activity, whereas Vancouver saw a decrease in new housing starts by 32%.
However, home sales during the same period slightly declined by 0.6%, despite a small increase in newly listed properties. This drop in sales has been attributed to various factors, including higher borrowing costs, economic uncertainties, and policy interventions.
The Bank of Canada’s recent interest rate cut by 25 basis points is anticipated to influence the housing market. Some economists predict that this reduction could encourage more buyers to enter the market, potentially leading to a rebound in home sale.
For further details, you can check the full reports on the CBC and Yahoo Finances.
