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Housing starts fell in July: CMHC
% a# v m( N- N+ M% b) f* n(CP) – 41 minutes ago
% D k. g3 H& `1 wOTTAWA — 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.
5 a0 K- u, U" ]4 i- {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.1 w: ]* ^! W# M6 X. R2 ]2 D
In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.& _; V5 ^2 R$ _# m% g! I
"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./ n9 j; X7 w2 L
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.0 d* K0 P- Q0 H7 o* I+ P
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.
, W$ |7 b. F/ U2 @" q& NThe corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.
0 Q, m8 c+ k4 B7 R8 T- GIt forecast 160,250 starts this year and about 163,350 for 2010.
9 b1 d P# `. w. T5 A, sUrban 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.
3 p- ?2 x2 `9 W5 T! i; L6 A3 `7 \: u5 PRural starts were estimated at a seasonally adjusted annual rate of 18,600 units.
( z( K' v2 t; B3 I+ aStarts 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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