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Housing starts fell in July: CMHC
9 k: g, O7 V( y5 z: |6 ?+ m(CP) – 41 minutes ago! Q/ E9 Q* T; }) R$ |4 o
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./ p' [: \+ B1 A" B4 x9 N- |5 J5 d
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.
6 G; p' n) [% J# E! qIn July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.
( V) g. k& k: W- s; U"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.! I6 V- j4 O" N, L
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.
/ n# [2 [ X$ w2 @. x. W' ^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 U8 u6 p2 J4 o8 P" @/ Q
The corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007. L% P6 G8 n) o/ o
It forecast 160,250 starts this year and about 163,350 for 2010.
5 ^4 G; i$ ]* V5 C' 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.
7 T, h/ B; V, m1 S8 i7 fRural starts were estimated at a seasonally adjusted annual rate of 18,600 units.
; |- K# R8 J7 }# y3 D4 oStarts 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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