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Housing starts fell in July: CMHC
2 [! c' R/ ]) k5 ]+ B+ L8 z; ?(CP) – 41 minutes ago
; Z# J. h# S" @) ?% @& b. @1 UOTTAWA — 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.
- m# b( ~( B! eHousing 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.
, h8 j1 C- A9 P9 s n, jIn July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month., ]) U p3 ~# w- L. z: {7 ]
"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.2 k a5 U7 D' H! i' y# `+ D9 w
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 O* }. P; {; p, S% rHousing 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.
6 i1 s' O0 N, z( F* ]0 j" PThe corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.# C5 J7 g' u8 ?+ r1 C0 C
It forecast 160,250 starts this year and about 163,350 for 2010.
4 Z; R, |$ b9 n# {& D- JUrban 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.
, h. w0 h4 w3 I* n4 v& E+ c0 F; iRural starts were estimated at a seasonally adjusted annual rate of 18,600 units.' x" B# i- b. U& K8 H1 E7 u7 _
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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