Canada: Housing starts fall in May
June 10, 2019
Housing starts on a seasonally-adjusted (SAAR) basis plunged to 202,337 units in May, according to the Canada Mortgage and Housing Corporation (CMHC). May’s reading was down from a downwardly revised 233,410-unit print in April (previously reported: 235,460), driven by a sharp decline in multiple urban starts which was only marginally offset by an increase in single-detached urban starts. The reading missed analysts’ expectations of 205,000 units.
Meanwhile, the six-month average of housing starts on a SAAR basis retreated to 201,983 in May from 205,717 units in April.
Providing commentary on Canada’s housing starts, Rishi Sondhi, an economist at TD Economics, noted:
“After April's spry gain, some slippage in homebuilding was to be anticipated in May. However, housing construction has been firm so far in the second quarter, averaging 217.9k units. Alongside indications of a healthy rise in home sales, this strength sets us up for positive growth in second quarter residential investment - its first in over a year.”
Author: Steven Burke, Economist