Canada: Housing starts plummet in February
March 9, 2015
Seasonally-adjusted annualized housing starts registered 156,300 units in February, according to the government-owned Canada Mortgage and Housing Corporation (CMHC). The figure marked a 16.4% decrease over January’s 187,000 units and notably undershot market expectations of 179,000 units. The drop marked the sharpest decrease since March of last year and was driven largely by a drop in multiple urban starts.
The six-month moving average fell by 3.5% over the previous month, from January’s 188,800 average to 182,100 in February, thus reaching the lowest level since June 2013. The CMHC commented that, “[t]he declining trend in multiple starts is helping to gradually erode the inventory of completed and unsold units, which is high compared to historical levels.”
Author: Dirina Mançellari, Senior Economist