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Housing starts fell in July: CMHC- V& z* D3 ? I, h. I) P/ _4 s( ~* R
(CP) – 41 minutes ago! [ `- X% k% d3 X1 B, o
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.% l6 r7 \9 ?2 R; N: ?* r
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.
. `& A J" Z3 `In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.- I% @1 ?$ Q! s. L0 k0 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.7 A0 w% A' U8 @1 A0 u
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.
$ X- t0 N2 T3 n0 c7 t% N5 dHousing 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.& V& x: j+ @. W% ]! v5 K0 g2 G2 P
The corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.
1 K2 s2 n" B5 F2 rIt forecast 160,250 starts this year and about 163,350 for 2010.0 \; Q: `; s0 ?9 |5 y
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.2 d: I2 L, ]& [, F, k8 {
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.2 V6 |* }4 Z# Z1 p
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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