Canada: Housing starts hit a seven-month low in August
September 8, 2016
Seasonally-adjusted annualized housing starts registered 182,700 units in August, according to the government-owned Canada Mortgage and Housing Corporation (CMHC). The figure marked a substantial 6.1% decrease over July’s revised 194,700 units (previously reported: +198,400 units) and marked the weakest result in seven months. Markets had expected a stronger reading of 190,000.
The six-month moving average in housing starts was 195,600 in August, which marked a 2.8% decrease over the previous month’s 201,400. The CMHC commented that, "housing starts declined in August, as construction of multi-unit dwellings slowed in most regions, led by lower activity in Alberta and Manitoba. However, housing market activity levels remain elevated and this decline in starts is the market's response to increasing levels of supply. Multi-unit inventories are above average in several major markets across the country."
Author: Luis Lopez Vivas, Economist