Canada: Housing starts drop slightly in July
August 9, 2013
Seasonally adjusted annualized housing starts fell to 192,900 units in July, according to the government-owned Canada Mortgage and Housing Corporation (CMHC). The figure was down 0.5% from June's revised 193,800 units (previously reported: 194,100 units), but came in above market expectations of 190,000 units.
The six-month moving average rose 2.9% over the previous month, from 182,100 units in June to 187,400 in July. According to the CMHC, "the trend in total housing starts continued to be relatively stable in July. For the past few months, total housing starts have followed the stabilizing trend that was observed earlier this year in sales of existing homes. Trends in the two market segments typically follow a similar pattern, with the new home market lagging behind the existing home market by a few months".
According to its Q2 Housing Market Outlook, the CMHC estimates that housing starts will reach 182,900 units in 2013 and 188,900 units in 2014. FocusEconomics Consensus Forecast participants are less optimistic and expect 179,000 housing starts in 2013. For 2014, the panel sees housing starts at 172,000.