Canada: Housing starts edge down in June
July 9, 2013
According to the government-owned Canada Mortgage and Housing Corporation (CMHC), seasonally adjusted annualized housing starts fell to 199,600 units in June. The figure was down 2.5% from a revised 204,600 units in May (previously reported: 200,200 units) but came in above market expectations of 187,500 units.
The six-month moving average, however, rose for the second straight month and edged up 0.2% over the previous month, from 184,100 units in May to 184,500 units in June. According to the CMHC, "as expected, the trend in total housing starts remained essentially stable in June, for a third consecutive month. This reflects general stability in regional trends over the same period. As a result, the trend in national housing activity remains close to its historical average and is in-line with estimates of household formation".
According to its Q2 Housing Market Outlook, the CMHC estimates that housing starts will reach 182,900 units in 2013 and 188,900 units in 2014. FocusEconomics Consensus Forecast participants are less optimistic and expect 179,000 housing starts in 2013. For 2014, the panel anticipates housing starts at 172,000.