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Housing starts fell in July: CMHC( A& e5 K) E6 i8 o/ ]
(CP) – 41 minutes ago
( F9 L- g( k6 l- w: L3 O$ _. BOTTAWA — Housing starts declined last month from where they were in June but are expected to rise later this year, Canada Mortgage and Housing Corp. said Tuesday.
3 |# U: x5 b! ZHousing starts fell to 132,100 units in July from 137,800 units in June, on a seasonally adjusted annual rate, mostly because of the multiple-units segment that includes condos and apartment buildings.
2 _# V/ y3 z0 tIn July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.
+ c5 Y0 \6 c' u"Although July registered a decline, housing starts are expected to improve throughout 2009," said Bob Dugan, chief economist at the corporation's market analysis centre.* K4 t9 D [: ^9 F/ q2 g' e
The agency predicted that over the next several years housing starts will gradually become more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year.
9 x9 Q' y0 z- D O$ z2 r7 u( dHousing starts this year are down sharply from 2008 and 2007, when builders and buyers responded to a strong economy, low interest rates and years of pent-up demand.
, o) P! x: }! }. K, GThe corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.
, ^* Q* z' l+ x% }! }# |; ?It forecast 160,250 starts this year and about 163,350 for 2010.
" J, [' c! {0 b+ mUrban starts on a seasonally adjusted basis fell 5.5 per cent in July to 113,500 units, with multiple starts down nine per cent and singles off 1.1 per cent.
4 q% ^0 m3 U) z1 @% c; ]8 \Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.
4 W k5 l) y, x, B: R) _Starts in Quebec rose 16.6 per cent in July, while they fell in other regions, including a 15-per-cent drop in Ontario. |
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