New home construction in the Greater Montreal Area fell by 40 per cent in March as demand for new homes slowed, the Canada Mortgage and Housing Corp. reported.
Despite the overall decline, builders began work on slightly more condos during the first three months of the year than they did during the same period a year ago.
A total of 1,339 dwellings were started, meaning the foundations were poured, during March. That compared to 2,237 units in March, 2011. Condo starts fell by 20 per cent in March, though the number of starts for the quarter rose by 3 per cent, year over year.
The CNHC attributed the decline on the balanced resale market which has higher inventory than in recent years.