Canada: Housing starts continue to advance
August 9, 2011
The Canadian housing market remains in good shape. According to the government-owned Canada Mortgage and Housing Corporation (CMHC), seasonally adjusted annualized housing starts increased to 205,100 units in July, up 4.3% from a revised 196,600 units in June (previously reported: 197,400 units). The reading came in well above market expectations, which anticipated housing starts to shrink to 195,000 units in July. According to CMHC, the monthly increase reflected a rise in multiple starts in virtually all regions of Canada. Rising housing starts bode well for economic growth at the outset of the third quarter, as housing starts typically reflect changes in the business cycle. According to new CMHC estimates, housing starts are projected to total 179,500 units in 2011 and 185,300 units in 2012.