Canada: Housing starts fall further in January
January 5, 2016
Seasonally-adjusted annualized housing starts registered 165,900 units in January, according to the government-owned Canada Mortgage and Housing Corporation (CMHC). This was the lowest number of starts registered since February 2015. The figure marked a 3.9% decrease over December’s 172,500 units and undershot market expectations of 185,000 units. The decrease however, was less drastic than last month’s 18.5% decline.
The six-month moving average fell by 2.0% over the previous month, from December’s revised 203,300 (previously reported: 208,200 units) to 199,200 in January. The CMHC commented that, “housing starts trended down across the country with the exception of Ontario. The overall decline is mostly attributable to a slowdown in the Prairies where the housing starts trend was at a 4-year low in January. The slowdown in new housing activity coincides with an unemployment rate that is at a 5-year high in Alberta.”
Author: Robert Hill, Economist