Canada: Trend in housing starts hits nearly five-year high in June
July 11, 2017
Seasonally-adjusted annualized housing starts registered 212,700 units in June, according to the Canada Mortgage and Housing Corporation (CMHC). June’s figure marked a recovery in housing starts following two months of sharp decreases, increasing 9.1% from May’s 195,000 units and coming in roughly in line with many of last year’s prints. June’s print came in slightly above analysts’ expectations of 200,000 units started.
June’s six-month moving average for housing starts reached a nearly five-year high of 215,500 units in June, a 0.4% increase from May’s 214,600. Bob Dugan, CMHC’s chief economist, commented that, “so far this year, all regions are on pace to surpass construction levels from 2016 except for British Columbia, where starts have declined year-to-date after reaching near-record levels last summer.” In the overheated Toronto market, housing starts were virtually unchanged from May despite the recent downturn in the resale housing market as limited existing supply forced buyers to purchase pre-construction units.
Author: Christopher Thomas, Economist