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Housing starts fell in July: CMHC# b8 T% {: m# ^4 `( ]6 r$ }1 f
(CP) – 41 minutes ago
* Y7 K# H1 l/ \& NOTTAWA — 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.
( p4 q3 s+ ~4 U* c" O/ [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.) T8 Y! O% ^& `; r% W) \0 {" ^3 f) J6 U
In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.
6 U$ q, Z( R2 K* v* c# t0 _"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.: @; R6 B) X& a
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.+ D/ F" t& C: X$ `! Q+ _* e
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.
3 l4 J( }1 ~8 v' Y# u- @8 A3 kThe corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007., _9 M4 O7 d3 V3 i% K
It forecast 160,250 starts this year and about 163,350 for 2010.* d, Z2 F q% s% L# ^, _
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.7 K$ i! a% p: X$ Y. v
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.
$ X: l! ~1 q. g- _& kStarts 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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