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Housing starts fell in July: CMHC
" b9 H' Y; U/ U k3 @(CP) – 41 minutes ago1 c: C9 U+ I+ k2 V1 I1 x$ s
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.0 s5 O# o3 j! e! q3 @0 M% g
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.0 G( ?& j- I3 F. |* D' V1 H
In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.
0 e6 ]$ @# H: Q* z5 _% b% n"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.
+ l, F" \# o' \9 c$ }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.
8 R" I: A8 ?3 O' p/ X0 K( ?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.
( X% ^/ T9 {! D% fThe corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.
) k+ S* q+ [$ y; w) {8 zIt forecast 160,250 starts this year and about 163,350 for 2010. a! }" h: E6 L1 n/ v F
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.
% ]( }1 p; C9 f2 A' |+ |Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.# D7 C) b" E+ C! R5 l$ R
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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