Canada: Housing starts slow further in December
January 9, 2014
Seasonally-adjusted annualized housing starts registered 189,700 units in December according to the government-owned Canada Mortgage and Housing Corporation (CMHC). The figure was down 4.1% from November's revised 197,800 units (previously reported: 192,200 units) and was broadly in line with market expectations of 190,000 units.
The six-month moving average fell just 0.3% over the previous month, decreasing from 196,400 units in November to 195,800 in December. According to the CMHC, "the trend in housing starts has remained essentially stable since October 2013. Housing demand continues to be healthy in Canada. The trend in existing home sales has been increasing since April 2013."
According to its Q4 Housing Market Outlook, the CMHC estimates that housing starts will reach 184,700 units in 2014. FocusEconomics Consensus Forecast participants expect 188,000 housing starts in 2014. For 2015, the panel sees housing starts at 180,000.
Author: Carl Kelly, Economist