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Housing starts fell in July: CMHC
% t0 W% C: o4 O, M2 B7 A(CP) – 41 minutes ago
/ q2 V# X" e. j/ y' 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.
0 c a! d" q" \. U5 Q4 S* W' PHousing 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.; S5 u' f& x0 H3 D, t, V. F
In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.
* l: m) R% p( W1 f- J) X7 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.+ B5 r. a' X i. ^! i3 E3 m
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.5 `1 J. W0 i* l) M0 ~
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." K' a; N$ |& P, N
The corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.! n$ ?/ T7 B' G
It forecast 160,250 starts this year and about 163,350 for 2010.* e5 W* J, o0 @+ J1 u# ~- b$ z
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.6 {: U& r8 s0 f4 H5 ^6 Y: B
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.
$ j- E% {/ a" b' N* 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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