Canada: Housing starts fall to a 13-month low in December
January 9, 2013
According to the government-owned Canada Mortgage and Housing Corporation (CMHC), seasonally adjusted annualized housing starts fell to 198,000 units in December, which was down 1.7% from a revised 201,400 units in November (previously reported: 196,100 units). The reading represents lowest figure since November 2011 but, nonetheless, came in above market expectations that had housing starts moderating to 195,000 units. According to the CMHC, December's deterioration mainly reflected a decline in rural starts, while urban starts were stable.
Overall in 2012, housing starts reached 214,900 units, which was above the 193,300 units registered in 2011 and marked the best performance since 2007. The sector, however, seems to be losing momentum, with the 6-month moving average declining 1.9% over the previous month, from 215,600 units in November to 211,400 units in December.
According to its Q4 Housing Market Outlook, the CMHC estimates that housing starts will reach 193,600 units in 2013 (previously forecasted: 193,100 units).