Canada: Housing starts drop in August
September 10, 2013
Seasonally-adjusted annualized housing starts registered 180,300 units in August, according to the government-owned Canada Mortgage and Housing Corporation (CMHC). The figure was down 6.6% from July's revised 193,000 units (previously reported: 192,900 units), and came in below market expectations of 190,000 units.
The six-month moving average fell an immaterial 0.1% over the previous month, dropping from 187,300 units in July to 187,200 units in August. According to the CMHC, "the trend in total housing starts continued to be relatively stable for a sixth consecutive month, remaining within a narrow range of roughly 182,000 to 188,000 units since March 2013. This is in line with our forecasts."
According to its Q3 Housing Market Outlook, the CMHC estimates that housing starts will reach 182,800 units in 2013 and 186,600 units in 2014. FocusEconomics Consensus Forecast participants are more optimistic and expect 184,000 housing starts in 2013. For 2014, the panel sees housing starts at 174,000.
Author: Carl Kelly, Economist