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Is The Housing Market Finally Cooling?

Housing starts fell a total of 39% in June compared to June 2017, according to the Canada Housing and Mortgage Corporation.

Ground broke on just 73 single-detached homes last month compared to 108 in the same month of last year, a drop of 32%.

The more dramatic decrease was in multi-unit housing starts. They fell from 50 in June 2017 to 23, a 54% drop.

The drop in June is the seventh month in a row housing starts fell in the Windsor CMA.

The corporation said it comes at the same time as a more modest market in existing homes following record highs.

The Canadian Real Estate Association says 631 homes changed hands in June, a drop of 22.7% from last June, but listings rose 5.5%. That is still well below the same time in past years according to the association.

The average price of a home in the Windsor CMA continued to rise, showing a 12.1% increase last month over June 2017 to $303,181.

“Home sales were running at healthy if average levels in June, well below the same month in the last two years, but above most other months of June in history,” President of the Windsor-Essex County Association of Realtors, Daniel Hofgartner is quoted as saying. “With under two months of inventory, a lakc of product for sale could be crimping sales.”

Royal LePage’s National House Price Composite report for the second quarter of 2018 also shows Windsor housing prices continuing their climb. For a standard two-storey home, the price jumped from $227,145 in the second quarter of 2017 to $242, 854, an increase of 20.4% year over year. Condominiums also had a significant year-over-year jump of 19.1% as prices climbed to $194,765.

The Canadian Real Estate Association does not have statistics for Windsor specifically but said housing sales were at a five-year low in May with slightly more than half of all markets reporting lower sales.

 

– A previous version of this story did not include June statistics on housing sales.