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Housing starts fell in July: CMHC
1 i; v# y9 ~8 @/ F) o$ _+ s(CP) – 41 minutes ago- J6 X0 ]1 _7 j+ B+ x3 B0 ^
OTTAWA — 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.$ ?9 X: i7 h, Y2 K' W% y
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.; K4 N7 Q0 I ~' v! P9 f
In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.8 i# P: k! S% H$ c: y
"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.
! Y, a" J1 Z. ?! r9 ]* @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.( |( G* [/ `3 [$ f5 f$ 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.
% O& A* c3 v/ [, B% }4 T4 mThe corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.# j3 R( S" O* _1 s; f' V
It forecast 160,250 starts this year and about 163,350 for 2010.
/ R) U% ] ^! `. o |; D, cUrban 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., c( L( j" g/ \1 m6 g2 S' j$ v
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.+ q) S" o7 S! k ^1 o- I9 o
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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