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Housing starts fell in July: CMHC
% s% l2 S& G9 v+ U1 n9 I(CP) – 41 minutes ago U+ k1 O9 s5 N0 s* k6 p' X3 h
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.& O1 I6 J$ K; `4 U; s
Housing 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.# C/ _9 v3 N+ N. {$ M
In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.: f9 J3 N7 N' r) r+ R
"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.
* }+ s# |; M% `. f) d& f8 ^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.3 H* v% R1 Y2 }9 c$ v1 E
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.( `7 e& p1 ^" G: g; I5 E
The corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007./ ]0 y! h- T/ q! x; H9 K; _. @
It forecast 160,250 starts this year and about 163,350 for 2010.
& G* O. K- F. YUrban 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.4 n+ U/ S5 @+ L3 l" K# T
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units./ R! b4 O" s. \+ y& B
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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