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Housing starts fell in July: CMHC: v2 L" ^$ c- `) c# |8 ?; w% a
(CP) – 41 minutes ago
) p# s6 j- O4 i3 m+ k- V( 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.: I1 s! e7 N' I* i& F" w
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.
+ p t6 @- z/ ?In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.
# r1 Y z$ V$ @! D6 S0 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.! C- I$ t& c) U7 R3 I5 k2 H; B
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 t( P c! Q' X! \, F9 WHousing 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% G' b, n8 Z/ g n; p
The corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.% k/ _' G" @+ Z" U" T3 U
It forecast 160,250 starts this year and about 163,350 for 2010.
4 P* k1 ^# K7 l# G( AUrban 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. [7 B; R5 e5 N5 V$ o5 p
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.
* {3 g2 E7 N- oStarts 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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