Canada: Housing starts slow further in January
February 10, 2014
Seasonally-adjusted annualized housing starts registered 180,200 units in January according to the government-owned Canada Mortgage and Housing Corporation (CMHC). The figure was down 3.7% from December's revised 187,100 units (previously reported: 187,500 units) and was slightly below market expectations of 185,000 units.
The six-month moving average fell just 0.6% over the previous month, decreasing from 194,500 units in December to 191,500 in January. According to the CMHC, "the trend in housing starts decreased slightly in January, while the inventory of newly completed and unabsorbed units saw a modest downward trend in the last half of 2013. This is consistent with our expectation that builders will continue to gradually adjust activity in order to manage their levels of inventory."
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