Declining home sales impact CMHC income

A decline in home sales due to unfavourable economic factors including high interest rates and elevated household debt impacted financial results for Canada Mortgage and Housing Corporation (CMHC) in the first quarter. Higher house prices, increased borrowing costs, inflation, and elevated levels of household debt have made homeownership less affordable. This has resulted in lower transactional homeowner unit volumes consistent with decreases in MLS sales relative to the same quarter in 2022. Labour shortages, combined with increased construction and financing costs, are constraining new housing construction activity. This is exacerbating current housing supply shortfalls, notably in Toronto, ON, and Vancouver, BC, and contributing to house prices remaining high. The organization had an increase in multi-unit insurance volumes compared to prior-year period. Net income for the first quarter was $331 million, down from $345 million in the first quarter of 2022. This is mainly due to a decrease in insurance service results, which were partially offset by higher net interest income and investment income from higher interest rates.