Pace of Canadian housing starts surprises with Aug increase

Canadian housing starts rose somewhat in August, defying a expectations of economists who had been looking for a drop.

Canada Mortgage and Housing Corp. reported Monday that a a seasonally practiced annual rate of housing starts for all areas of Canada was 223,232 units in August, adult from 221,974 units in July. 

Market watchers had been awaiting a annual rate of housing starts to come in during 216,000 units  for August.

Ontario drove a boost final month, with starts jumping to 95,000, pronounced Robert Kavcic, comparison economist during BMO Capital Markets, leaving home building in a range on gait for a many activity given 2003.

“This stays mostly a [Greater Toronto Area] story, and still one of plenty condo supply, though a default of single-detached units,” Kavcic pronounced in a commentary.

CMHC pronounced condominium unit starts in Toronto approached a seasonally practiced annual rate of 36,000.

“The rare pre-construction condominium unit sales levels seen over a past few years will safeguard that high-rise construction stays clever in a nearby term,” CMHC said.

Michael Dolega, comparison economist at TD, pronounced a Aug news suggests that a Canadian housing marketplace “remains utterly clever after a stagger it suffered in a second entertain and a doubt of regulatory changes in Ontario and rising seductiveness rates.”

Dolega pronounced final month’s news outlines a second-best month this year while a six-month relocating normal is impending a 220,000 mark — the fastest gait given late-2012.

“All in all, we design Canadian housing starts to sojourn comparatively healthy in a entrance months, though start to trend reduce as a effects of rising seductiveness rates…and intensity new regulation…gradually take a punch out of demand,” he said.

Housing starts should reason nearby a stream levels in a subsequent month or two, though trend towards a 200,000 turn into early-2018 and tumble next that threshold a year after, Dolega said.

Article source: http://www.cbc.ca/news/business/housing-starts-annual-rate-august-1.4283795?cmp=rss