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Housing starts fell in July: CMHC- q3 R* F' S: {5 G4 P
(CP) – 41 minutes ago
7 s! O* Z5 k3 ` t8 F: oOTTAWA — 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.
^2 \5 R: n9 U0 ^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.9 P" V; ?; ~; b- X/ |& c7 L
In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.' T8 M* }( c( A6 N
"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.- V; b. n" F6 Y4 u% w6 y) Y) Z
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.: r& z* H7 Z& y/ Q
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.
8 S9 a& y4 ]% U4 w9 oThe corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.
4 g6 ^9 [* L* k2 ~9 v; Z1 R6 JIt forecast 160,250 starts this year and about 163,350 for 2010.9 u4 l: f( N% g9 e" m/ H' o
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.% C4 E; O+ D6 ^6 b2 Z( W% |- G
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.
+ R2 c8 J! O0 d' G( o& q9 g4 f3 nStarts 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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