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Housing starts fell in July: CMHC' _5 W! A# e$ U$ S$ A
(CP) – 41 minutes ago
h e4 B+ h* A! I& J! 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.% V8 e& i" g% e! p$ E4 l
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.- A/ N5 K& W% q
In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.! W' t- N+ E% r
"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.
9 H& b" Q$ x' Y+ Q. ?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.: i) Z% m7 v8 `# e& w! H" Z7 e. I4 M/ 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.: A& y6 j/ m" b+ y; V% g+ L+ V$ {
The corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.2 h3 J$ ^5 o% Y
It forecast 160,250 starts this year and about 163,350 for 2010.
0 e2 `, U, D) I) |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.
) @9 H8 H/ M1 v0 E( T1 g3 t i' eRural starts were estimated at a seasonally adjusted annual rate of 18,600 units.( T1 P* W& E! m) e" H2 X
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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