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Housing starts fell in July: CMHC
1 ^, L: e* J$ F- c! d7 a(CP) – 41 minutes ago
, U3 V0 O( O$ W& j1 c, HOTTAWA — 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.# l1 k. P' P- V8 N4 T: I
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.
( }- y* Y! \* m( j6 YIn July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.
! d8 i, e4 C* X# W6 R. [5 ~# V"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.% O- [1 J4 q1 c0 x1 h1 t
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.
% A+ A7 w p9 g+ e5 PHousing 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.
; A: t }4 d, c& |0 q X" aThe corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.# Z0 Q( g2 ^7 t0 i
It forecast 160,250 starts this year and about 163,350 for 2010.* {8 V! M. u% P5 l
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.# u _. o( z' x1 Z+ w
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.0 X D: v2 ^' d1 r
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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