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Housing starts fell in July: CMHC$ w) s, f. {6 o/ p2 ^+ n2 B# \
(CP) – 41 minutes ago
3 r R1 H; O ^7 {- LOTTAWA — 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.& s: T @0 G# g' P$ `4 K
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.
; y# F! S3 F- b5 _, G# }In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.+ D4 R: C6 D1 O) r9 w! A( b
"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.- ]7 q" { A: l: P% S
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.
' l9 v9 A* Z! j6 S$ f+ THousing 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.
- z2 u- T4 Q- b% A, JThe corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007., F& r0 P/ B/ Y9 a& n
It forecast 160,250 starts this year and about 163,350 for 2010.
2 A; r5 T) |; r) N+ N8 _* R* s9 IUrban 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.) Y. Z: h& A2 R" ^# N& R1 y
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.5 p0 `( Q, p$ Y" b" T p+ N: \
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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