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Housing starts fell in July: CMHC
8 y* p2 o0 w! H* p3 S2 A' E q(CP) – 41 minutes ago2 @. {7 J& s t( F0 M
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.
' p4 r/ p) u5 E1 y' t7 ZHousing 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.7 G n1 u- R6 G9 ~$ h" @ U* t
In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.
- `3 Q$ `+ X: N0 p"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.5 O0 F# ~6 {$ I6 \2 O2 D
The 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.- \5 ~. N4 w% W( h- R
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.. u1 D2 N6 O7 }$ ?" {5 r
The corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.$ m7 J7 o/ o7 E; _& V9 h1 z3 O
It forecast 160,250 starts this year and about 163,350 for 2010.' F( ?6 O2 L/ Q8 p! y- I1 u/ T( _
Urban 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.0 B; ?( E% b! s; l: E" T
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.
2 w$ F! H6 [9 u" q; KStarts 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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