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Housing Starts Decreased in August as Expected
According to Canada Mortgage and Housing Corporation (CMHC), housing starts fell to 213,700 units in August, from 236,500 units in July.
"Housing starts decreased in August solely due to a decline in the multiple starts segment. After three consecutive months of increases, the volatile multiple starts segment dropped to its lowest level of the year in August," said Bob Dugan, Chief Economist at CMHC's Market Analysis Centre. "Single-detached starts moved higher from their lackluster performance in July, but not markedly so."
The seasonally adjusted annual rate of urban starts declined 11.3 per cent to 179,300 units in August compared to July. Urban multiples decreased 22.2 per cent to 87,800 units in August, while singles were up 2.6 per cent to 91,500 units.
Urban housing starts decreased in four out of five regions in August compared to July. Double digit declines were recorded in British Columbia, Ontario, the Atlantic region, and the Prairie region where urban starts were down 21.2, 19.8, 18.0, and 10.0 per cent respectively. Urban starts were up 19.6 per cent in Quebec.
Rural starts in August were estimated at a seasonally adjusted annual rate of 34,400 units.
"Total starts for the first eight months of this year remained ahead of last year's pace. However, strong house price gains will continue to dampen demand for new homes in the latter part of this year," Dugan said. |
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