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Housing starts fell in July: CMHC
- m7 ?- ^9 C( \2 ?9 z(CP) – 41 minutes ago
A) W7 j' z$ O* c1 JOTTAWA — 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 V: D1 R8 G4 w! @0 E9 d+ |
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.
. M7 E2 h7 ]. g) t* _9 r9 |* \2 n* R: AIn July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.' h. S2 r' {' S) o; T- v; e
"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.% F9 `' R7 m6 S2 _# T5 N) j
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.: A* M, f# m. D, W4 G
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/ U2 @4 u6 |% S; H, d9 jThe corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.$ s1 V- b- m. `9 p6 w+ a9 o6 Q
It forecast 160,250 starts this year and about 163,350 for 2010.
1 g+ o2 z5 }% X' M. DUrban 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.
) p; w- S; S6 d8 k) ?- C( cRural starts were estimated at a seasonally adjusted annual rate of 18,600 units.$ U) @* T. w4 H z( e/ b% l
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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