Canada Housing July 2017

Canada

Canada: Trend in housing starts at a nearly five-year high in July

August 9, 2017

Seasonally-adjusted annualized housing starts registered a notable 222,300 units in July, according to the Canada Mortgage and Housing Corporation (CMHC). July’s figure marked a second consecutive month of recovery in housing starts after falling sharply in early-Q2, increasing 4.4% from June’s 212,900 units and landing above most of last year’s prints. July’s reading blew past market analysts’ expectations of 205,000 units started.

July’s six-month moving average for housing starts reached a nearly five-year high of 217,600 units, a 1.1% increase from June’s 215,200 units. Bob Dugan, CMHC’s chief economist, commented that, “British Columbia and Alberta were the main contributors to the higher trend in housing starts. While B.C.’s construction coincides with near-record low completed and unsold units in the past few months, Alberta’s inventory of new unsold homes is ramping up, highlighting the need for managing inventories.” In the overheated Toronto market, housing starts trended lower as apartments and single-detached starts fell.

According to its annual Housing Market Outlook, the CMHC estimates that housing starts will record between 174,500 and 184,300 units in 2017. FocusEconomics Consensus Forecast participants expect 176,946 housing starts in 2017. For 2018, the panel sees housing starts moderating to 162,887 units.


Author:, Economist

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Canada Housing Starts July 2017

Note: Monthly housing starts at seasonally-adjusted annualized rate.
Source: Canada Mortgage and Housing Corporation (CMHC).


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