Canada may soon experience a slight slowing in the housing market – a key indicator of market growth was down in April, which could mean fewer homes on the market in the coming months.
The total value of building permits in Canada, which serve as an early indicator of new home construction levels, fell 5.2 percent, Dow Jones Newswire reported. The numbers come from an estimate by economists at the Royal Bank of Canada. They indicate that construction in most sectors, from schools and hospitals to single-family homes and condominiums, will probably tick downward in the not-too-distant future.
Permits for single-family homes saw the smallest declines, falling just 2 percent over the previous month, while multi-family units, including condos, dropped 4 percent, according to the source. The largest declines were seen in Ontario, specifically Toronto, where housing prices and condo construction have been on a veritable upward stampede.
Canadian mortgage rates, meanwhile, are likely to remain low. The bank of Canada recently issued its latest overnight target rate update, which saw the lending rate remain at 1 percent. Even if housing construction should slow down marginally over the summer, Canadians will still have access to affordable home loans.