Housing starts move lower in July
The seasonally adjusted annual rate of housing starts was 215,600 units in July, down from 225,300 units in June, according to Canada Mortgage and Housing Corporation (CMHC).
“Housing starts in July continued their gradual decreasing trend as both multiple and single-detached starts declined,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “The lower level of housing starts this month is consistent with our forecast of a gradual easing in the pace of new home construction in 2007 caused by rising prices and slightly higher mortgage rates.”
The seasonally adjusted annual rate of urban housing starts decreased 5.7% to 181,800 in July, compared to June. Urban singles were down 2.7% to 89,700 units in July, while multiple starts decreased 8.4% to 92,100 units.
In July, seasonally adjusted urban housing starts decreased in four out of five regions. Urban starts registered an increase only in Ontario where they rose by 4.6%. There was a decrease of 12.8% in Quebec, 9.3% in the Prairies, 8.1% in British Columbia, and 3.8% in the Atlantic region. Urban single starts were up in Ontario (2.8%) and the Atlantic (6.4%), while urban multiple starts declined in all regions except for Ontario, where multiple starts increased 6.9%.
Rural starts were estimated at a seasonally adjusted annual rate of 33,800 units in July.
Actual starts, in rural and urban areas combined, were down an estimated 4.8% in the first seven months of 2007 compared to the same period in 2006. In urban areas, actual total housing starts fell an estimated 6.0% year-to-date with both single and multiple starts declining by 6.7% and 5.2%, respectively.
As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on over 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes - homes that will continue to create vibrant and healthy communities and cities across the country.
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