Saturday, July 12, 2025

Latest

The Real Estate Market Chill: Homebuying, Housing Starts Fall to Multi-Year Lows in January

The Canadian housing market cooled dramatically in January, as high interest rates ripple through the economy and send potential homebuyers to the sidelines. National home sales fell 3% month-over-month in January and were down 37.1% from one year ago— the lowest in 14 years, according to the latest data from the Canada Real Estate Association (CREA).

New listings rose 3.3% on a monthly basis last month, largely led by gains in British Columbia. Still, the small increase wasn’t enough to offset the broader shortage, as national listings still sat at the lowest level for that month since 2000. National home prices were also down, falling 18.3% from one year ago to an average of $612,204.

The pace of new home construction was also down last month, as housing starts fell 13% between December and January to 215,365 units, data published on Wednesday by the Canada Mortgage and Housing Corporation (CMHC) showed. Urban starts slumped 16% and multi-unit urban starts dropped 20%, while single detached home construction rose 3% to 45,224 units.

Source: CMHC

“Among Toronto, Montreal and Vancouver, Montreal was the only market with increases in total SAAR housing starts in January, up 36%. Toronto declined 52% while Vancouver declined 14%, which contributed to the overall monthly decline in SAAR housing starts for Canada,” added CMHC chief economist Aled ab Iorwerth.

The dip in home sales and new home construction comes as the federal government and provincial governments set ambitious goals to expand housing availability in Canada’s populated regions. Thanks to the Bank of Canada’s aggressive tightening cycle, though, higher interest rates are putting a chill on real estate activity across the country.

Information for this briefing was found via CREA, the CMHC, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Mergers Set the Stage for Uranium’s Growth Cycle | Forum-Baselode Merger

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Recommended

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

Related News

Household Credit Liabilities Persist Amid Slower Mortgage Growth and Rising Credit Card Debt

The Canadian consumer is becoming increasingly more indebted, as high inflation and interest rates erode...

Wednesday, June 21, 2023, 07:29:00 AM

Golds Price Is Only Loosely Linked To The Fed Funds Rate

Many investors in the equity, bond and commodities markets expect the U.S. Federal Reserve to...

Sunday, September 4, 2022, 09:00:00 AM

Bank of Canada Maintains Target Rate At 5.00% At April Meeting

The Bank of Canada has maintained its target for the overnight rate at 5%. Despite...

Wednesday, April 10, 2024, 09:55:25 AM

Choke Points: The War on Inflation is Getting Pretty Selective

Inflation is too high, so central banks are raising interest rates to try and bring...

Saturday, July 22, 2023, 09:31:20 AM

Russia’s Central Bank Hikes Interest Rates to Two-Year High At 18%

Russia’s central bank raised its key interest rate by 200 basis points to 18% on...

Friday, July 26, 2024, 10:17:00 AM