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Housing starts fell in July: CMHC
. y2 |9 H1 U' c7 l: g; x" a(CP) – 41 minutes ago0 _, C ]( K$ ]4 G7 c& @( j
OTTAWA — Housing starts declined last month from where they were in June but are expected to rise later this year, Canada Mortgage and Housing Corp. said Tuesday.
) T1 ~8 B; a: D& UHousing starts fell to 132,100 units in July from 137,800 units in June, on a seasonally adjusted annual rate, mostly because of the multiple-units segment that includes condos and apartment buildings.
+ i' j; s2 B8 ?+ b% @In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.* F; g) _7 T. C1 V! l: J4 `+ K; X
"Although July registered a decline, housing starts are expected to improve throughout 2009," said Bob Dugan, chief economist at the corporation's market analysis centre.
! w, m6 x! J4 nThe agency predicted that over the next several years housing starts will gradually become more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year.% J" d8 }5 _& t/ ?
Housing starts this year are down sharply from 2008 and 2007, when builders and buyers responded to a strong economy, low interest rates and years of pent-up demand.4 N# n$ H0 X3 H1 @$ k7 r/ ?4 z
The corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.2 d3 Y4 q8 q) r
It forecast 160,250 starts this year and about 163,350 for 2010.
. K ^4 N0 c2 Z, Y6 WUrban starts on a seasonally adjusted basis fell 5.5 per cent in July to 113,500 units, with multiple starts down nine per cent and singles off 1.1 per cent.5 a5 i2 @' c$ k, a3 l
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.. O# Z6 I" K( s$ z9 u! m, ?
Starts in Quebec rose 16.6 per cent in July, while they fell in other regions, including a 15-per-cent drop in Ontario. |
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