Canadian home sales fell from record levels in April as a resurgence of COVID-19 cases slowed the country’s housing market.
National home sales fell 12.5% from the previous month, as new listings declined 5.4%, according to the Canadian Real Estate Association (CREA). Despite the decline in activity, benchmark home prices still rose 2.4% in April and are up 23% from a year ago.
Home sales across Canada remain up 256% from a year ago, when the market froze at the start of the pandemic, according to CREA.
Canadian housing has climbed to records over the past year as low interest rates and demand for bigger living arrangements drove people into the market. In April, much of the country was grappling with a vicious new wave of COVID-19 infections that forced large parts of Canada to impose new restrictions on activity.
The drop in demand loosened market conditions. Canada had about two months worth of housing supply available, up from a record low 1.7 months in March, but still well above the long-term average of five months, according to the CREA report.
A separate report by Canada Mortgage and Housing Corporation found that Canadian home starts fell 20% in April but remained at historically elevated levels.