Canada: Housing market slows for the third consecutive month
November 9, 2010
The Canadian housing market showed profound signs of weakness falling for a third consecutive month in October. According to the government-owned Canada Mortgage and Housing Corporation (CMHC), seasonally adjusted annualised housing starts reached 167,900 in October, down 9.2% from a revised 185,000 in September (previously reported: 186,400 units). The figure was significantly below market expectations of 180,000 units and marked the largest drop in the rate of housing starts since April 2009. Housing starts are now at their lowest level since September 2009. CMHC estimates housing starts in 2010 to be 184,900. For 2011, the Corporation estimates housing starts to moderate to 179,600 units per year. Consensus Forecast participants are more optimistic and expect 192,929 housing starts this year, which is up 168 units from last month's forecast. For 2011, the panel anticipates housing starts to moderate to 183,055.