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Housing starts fell in July: CMHC
8 K. a$ G9 b3 V& y5 ~(CP) – 41 minutes ago
9 E( ]+ b0 m6 F! I" W3 h8 }' a( {OTTAWA — 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 t7 j, z+ ]/ Q' `% c% }8 |4 Q* }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.
4 I) f$ y3 Y5 p jIn July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.. G, [% `, q+ B0 C- X9 Z; m( C
"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.
5 k) e( `9 p0 ?- P8 K! `, iThe 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.
! K, g+ K6 L$ o2 F/ g5 q/ NHousing 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.
& b, \, i# p* R, t& U' q4 CThe corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.& r2 ]) O( P9 A4 M; _0 P" F
It forecast 160,250 starts this year and about 163,350 for 2010.! s% ~0 Y8 L% R2 \' Y0 T
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.( C% S; Y5 f {" m* ^6 o* ?
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.8 }+ `$ i) p. V2 `
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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