U.S. single-family housing starts experienced a significant downturn in July, falling 9.9% to an annual rate of 808,000 units, the lowest since February 2021. This decline, attributed to high mortgage rates and limited inventory, was accompanied by a 2.3% drop in pending home sales for the month, reaching their lowest point since January 2026. In contrast, Canadian home sales rose for the fourth consecutive month in July, increasing by 0.5%, with prices also seeing a slight uptick. The Canadian market saw a decrease in new listings, pushing the sales-to-new listings ratio towards its long-term average.
In July, U.S. single-family housing starts saw a sharp decline, dropping 9.9% to an annualized rate of 808,000 units. This figure represents the lowest level of single-family homebuilding since February 2021. Despite an increase in permits for future construction, overall market conditions remain subdued. High mortgage rates and a persistent shortage of available homes are cited as primary factors dampening the market.
Further illustrating the weakness in the U.S. housing sector, pending home sales fell by 2.3% in July compared to June. On a year-over-year basis, pending sales were down 2.2%, reaching their lowest point since January 2026. The National Association of Realtors noted that elevated mortgage rates and record-high home prices are significantly impacting affordability across most regions of the United States.
Conversely, the Canadian housing market demonstrated resilience in July. Home sales in Canada increased for the fourth month in a row, with a month-over-month rise of 0.5%. The Home Price Index also experienced a slight increase of 0.1% from the previous month, marking the first price growth since November 2024. The market dynamics were influenced by a decline in newly listed properties, which helped push the sales-to-new listings ratio closer to its long-term average.
In July, U.S. single-family housing starts saw a sharp decline, dropping 9.9% to an annualized rate of 808,000 units. This figure represents the lowest level of single-family homebuilding since February 2021. Despite an increase in permits for future construction, overall market conditions remain subdued. High mortgage rates and a persistent shortage of available homes are cited as primary factors dampening the market.