The Globe and Mail reports in its Thursday edition that the Bank of Canada reports that the housing downturn is hindering economic growth, particularly due to an oversupply of small condominiums in major cities. The Globe's Rachelle Younglai writes that the BOC now anticipates that housing will reduce GDP growth by 0.1 percentage points this year, down from an earlier prediction of a 0.2 percentage point increase. The report indicates that the decline in population and affordability challenges are constraining demand, impacting housing activity, while unseasonably cold weather has also slowed home sales in recent months. The residential real estate sector has been in a slump for years, with March home sales 20 per cent below the 10-year average, marking the lowest for that month since the 2009 financial crisis. Preconstruction home sales have also been dire, with transactions in Toronto at their lowest level in more than three decades. Developers have had to cancel or postpone dozens of projects, which will lead to a decline in new home construction. The six-month trend in housing starts fell 2.9 per cent from February to March. The BOC forecasts modest housing demand growth due to low investor interest.