Canada: Housing market slows in the third quarter
October 12, 2010
Canadian housing market slowed notably in the third quarter. According to the government-owned Canada Mortgage and Housing Association (CMHC), seasonally adjusted annualised housing starts reached 186,400 in September, down 1.5% from a revised 189,300 in August (previously reported: 183,300 units). The figure overshot market expectations of 185,000 units but marked the lowest level so far this year. Furthermore, in the third quarter housing starts fell 4.1% over the April-June period. The downward trend in home building in place since the beginning of the second quarter reflects the withdrawal of special lending conditions offered by the government until April this year. Nevertheless, the current pace of housing starts is consistent with the CMHC's official projection of 182,000 units for 2010. For 2011, CMHC expects housing starts to moderate further to 179,600. Consensus Forecast participants expect 192,000 housing starts this year, which is up 2,000 units from last month's forecast. For 2011, the panel anticipates housing starts to moderate to 183,000.