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Housing starts fell in July: CMHC
# c* m+ K& ]! u7 L4 A3 n. `! p# V \(CP) – 41 minutes ago
$ a. T3 @& C, U8 V6 E# \. w5 SOTTAWA — 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.6 Z7 j: R: m7 A
Housing 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.
m0 R4 t. t7 M+ K$ T1 z! A1 PIn July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.% b8 g. D+ O8 j: s- [4 ^
"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.! w. z, u5 o8 p! g
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.: b, z! M+ F d+ P1 `) X4 F
Housing 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. f0 Y$ ]$ X$ X
The corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.* e( Q& o7 m: N- W
It forecast 160,250 starts this year and about 163,350 for 2010.
( [) r& V- l- w% o/ l( |Urban 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.- N1 Y9 ~- d0 D- ?: n5 W: y. c
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.* d6 ^! D. u. |' k* e- y
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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