Search This Blog
money saving tips for canadians, best saving tips for canadians of all ages. MoneySavings and Canadian news, financial news
Featured
article
- Get link
- X
- Other Apps
Housing starts drop 10% in July: CMHC
According to the Canada Mortgage and Housing Corp. (CMHC), the annual pace of housing starts in July fell 10% compared with June when they posted their strongest showing so far this year. The seasonally adjusted annualized rate of housing (SAAR) starts fell to 254,966 units in July from a revised 283,498 units in June. The national housing agency says the monthly SAAR of total housing starts for all areas in Canada decreased 10% in July compared to June, which was the strongest month so far this year. Despite the monthly drop, total SAAR housing starts for all areas in Canada was 7.4% above the 5-year average.
This is a significant drop and could be attributed to various factors such as rising interest rates, high home prices, and supply chain disruptions. The CMHC also reported that Metro Vancouver’s annual pace of housing starts fell 23% in July while Toronto dropped 29%. Meanwhile, Montreal rose 12%, Calgary gained 33%, and Edmonton added 6%3.
Impact of housing starts drop on home buyers.
The drop in housing starts could lead to a decrease in the supply of homes available for purchase. This could lead to an increase in home prices due to the lack of supply1. The cost of housing has already reached levels that are unaffordable for a large share of new home buyers, translating into a slowdown in 2022. The expected increases in borrowing costs contribute to a further slowdown in house price growth in 2022 and 2023.
Impact of housing starts drop on renters.
The drop in housing starts could lead to an increase in home prices due to the lack of supply. This could also lead to an increase in rental prices as renters compete for fewer available units. The cost of housing has already reached levels that are unaffordable for a large share of new home buyers, translating into a slowdown in 2022. The expected increases in borrowing costs contribute to a further slowdown in house price growth in 2022 and 2023.
Popular Posts
Trump's Six Words: "I'm Going to Stop the Wars"
- Get link
- X
- Other Apps
Fiscal Challenges Ahead: U.S. Bonds Face Uncertainty Under Trump’s New Term
- Get link
- X
- Other Apps
Comments
Post a Comment