The supply shortage is severely hitting the housing market in Canada: CREA reports

Housing affordability might take a huge hit if supply issues continue to worsen

Canadian real estate authorities have recently released a statistic showing that the number of units available for sale has hit an all-time low record, and the pace at which new units are built is also slowing down. Canada Mortgage and Housing Corp. have recently stated that the annual growth of housing that begins in December fell by 22 percent when compared to November’s numbers. The national housing agency has also stated that the seasonally adjusted rates have come down to 236,106 units from 303,813. Meanwhile, CREA has reported that their numbers for home sales have remained the same from November to December.

Shaun Cathcart, the senior economist of CREA, has stated that the number of properties listed in the market was also a record low. The latest listings for the month of December went from 33606 to 28,550. Cathcart furthermore added that the issue could be addressed by pushing to build more homes, and once it is done, we will have a greater amount of building. Housing affordability might take a huge hit if supply issues continue to worsen. Many experts are certain that it will take many years of an aggressive push to deal with the housing deficit faced by the Canadian market.