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Housing starts fell in July: CMHC
& \* {% V+ ~2 }- _(CP) – 41 minutes ago
- ^' k& S/ i( Q 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.3 Q: S6 k; c/ H, O' V: z
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# F1 Y8 a" ]+ S4 d* k
In July of last year, there were 18,229 actual starts. The agency estimated there were 12,712 actual starts last month.
* c2 J7 v! d% t5 i, E4 [! 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.* D% Y; ]7 D* b8 o) c# j1 H2 O8 E
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.& m7 r7 A7 j! A6 @- i
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.; p3 C( ]: n4 [8 v0 E# Q
The corporation said in January that starts reached 211,056 units in 2008, down from 228,343 in 2007.
5 t y; d3 ]/ G) K( K- R2 V l( JIt forecast 160,250 starts this year and about 163,350 for 2010.
3 K: J8 v- ~5 z( N- |$ g0 DUrban 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.8 C* ?4 O- _2 i. _+ j
Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units.4 k$ Z; Y8 M& K% |. q
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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