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Housing starts fell in July: CMHC
" s' M4 M, @4 _' y- H/ V* q( l* @(CP) – 41 minutes ago& A* n, v" O! b- J* X z
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.
2 N2 G9 }7 b' K. SHousing 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.
5 \6 S% S( ~" M [1 NIn July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.# l4 Y8 L" O2 }# x
"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 m& z5 O# F# ^ O2 s* kThe 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 B& C0 x. H& f0 X+ oHousing 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.
% u8 P9 J' q3 b1 K. z- T9 c ZThe corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.# ?5 C* r4 l" N% R9 f4 A- b. {
It forecast 160,250 starts this year and about 163,350 for 2010.
# j1 O6 G$ z7 H' K. _" n- qUrban 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. }/ v9 i- L- ~ z2 q9 O" O
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.
1 m/ U- J/ _9 `, |, |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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