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New home builds in Canada slowed in June amid supply crunch

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WATCH: Royal LePage forecasts cooling of housing market in 2022 – Jul 14, 2021

Canada Mortgage and Housing Corp. says the annual pace of housing starts slowed in June.

The national housing agency says the seasonally adjusted annual rate of housing starts fell 1.5 per cent to 282,070 units in June compared with 286,296 in May.

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Priced out: Will the Canadian housing market crash? Why home prices may stay hot

The annual pace of urban starts fell 1.8 per cent in June to 251,190 as the pace of starts for apartments, condos and other types of multiple-unit housing projects rose 0.6 per cent to 191,085.

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Starts of single-detached urban homes fell 8.5 per cent to 60,105.

CMHC estimated rural starts at a seasonally adjusted annual rate of 30,880 units.

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The six-month moving average of the monthly seasonally adjusted annual rate of housing starts was 293,567 in June, up from 284,837 in May.

In June, The Canadian Real Estate Association said home sales fell on a month-over-month basis for the third straight month as the market continued to slow after hitting an all-time record in March.

CREA chair Cliff Stevenson said while there is still a lot of activity in many markets across Canada, things have noticeably calmed down in the last few months.

“There remains a shortage of supply in many parts of the country, but at least there isn’t the same level of competition among buyers we were seeing a few months ago,” he said in a news release.

CREA says the actual national average price of a home sold in June was a little over $679,000, up 25.9 per cent compared with a year ago.

— With files from Global News

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