The Canada Mortgage and Housing Corp. reported the monthly dip alongside a 0.5% uptick in the six-month moving average, a trend measure suggesting the broader market remains in flux. Despite the monthly contraction, deputy chief economist Aled Ab Iorwerth noted that year-to-date figures remain marginally ahead of the previous year’s pace.

However, the outlook for future supply appears increasingly constrained. Beyond the immediate monthly data, a decline in approved but unstarted projects indicates that developers are pulling back. This caution aligns with findings from the Canadian Home Builders' Association, which reported that builder confidence hovered near record lows during the first quarter. Sentiment remains particularly negative regarding multi-family residential developments, reinforcing concerns that construction activity will remain uneven throughout the coming months.