Canada: Housing starts rise in June
July 11, 2011
The Canadian housing market continued to expand in June. According to the government-owned Canada Mortgage and Housing Corporation (CMHC), seasonally adjusted annualised housing starts increased to 197,400 units in June, up 1.7% from a revised 194,100 units in May (previously reported: 183,600 units). The reading came in well above market expectations that anticipated housing starts to shrink to 185,000 units in June and marked the fifth consecutive month of rising starts. According to CMHC, the monthly increase reflects a rise in both single as well as multiple starts. Rising housing starts bode well for economic growth in the second quarter, due to the sensitivity of housing starts to 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.