What happened
Canada Mortgage and Housing Corp. reported that the annualized pace of housing starts fell 6% in June compared with May, as covered by Canadian Mortgage Trends.
Housing starts are a forward indicator: homes started today are the supply of two or three years from now. When construction slows while the population keeps growing — even at a reduced pace — it plants the seeds of future price pressure, particularly in supply-starved markets like the GTA.
“the annual pace of housing starts in June fell six per cent” — CMHC reports annual rate of housing starts in June down six per cent from May, Canadian Mortgage Trends
The EverLend take
Today's cooler market plus tomorrow's tighter supply is an argument for buying on your own timeline rather than trying to time the bottom. If you're waiting for dramatically lower prices, shrinking construction pipelines are working against that bet.
Source & further reading: CMHC reports annual rate of housing starts in June down six per cent from May on Canadian Mortgage Trends.
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