“The inventory of new and unabsorbed housing units 4 was 16,764 units in April 2014, down 6.9 per cent from 18,008 units in April 2013,” the Canada Mortgage and Housing Corporation said in its “Housing Now” report released Friday. “This was the fourth consecutive year-over-year decrease of inventories following 39 consecutive monthly year-over-year increases.”
However, April still eclipsed the historical monthly average of 13,577 units that has held since 1992.
“Under these market conditions, builders are expected to continue to manage their starts activity in order to ensure that demand from buyers is first channeled toward unsold completed units or unsold units that are currently under construction,” the report states.
Perhaps surprisingly, the declines haven’t only affected detached homes; with row and apartment units also seeing a downward trend.
“At 7,045 units, the actual inventory of single- and semi-detached units was 4.7 per cent below the year-ago level in April, while the actual level of 9,719 new and unabsorbed units of row and apartment structures was 8.5 per cent below the level recorded a year ago,” the report states. “For row and apartments units, this is the fifth consecutive decline from year ago levels and is consistent with expectations that builders will continue to adjust activity in order to manage their inventory levels.”
Housing inventory across Canada continued its declining trend in April 2014, marking four consecutive years of shrinking housing availability.