Wednesday, October 1st5.5°C
22738
22497

Pace of housing starts slowed in January compared with December, CMHC says

OTTAWA - The pace of housing starts slowed in January compared with December, Canada Mortgage and Housing Corp. said Monday.

The agency estimated there were 11,737 actual starts in January and that is extrapolated out to a seasonally adjusted annual rate of 180,248, down from 187,144 in December.

TD Bank economist Connor McDonald said the cooling in the number of housing starts supported the bank's view calling for a soft landing of the Canadian housing market this year and next.

"The decline in starts is an indication of housing supply falling into alignment with demand in most major markets," McDonald said.

"We've yet to see the same trend in Toronto, where new home sales have lagged due to limited supply. However, we expect Toronto to follow suit as homes under construction reach completion and more supply comes online."

Urban starts decreased by 2.7 per cent in January to 163,158 units on an adjusted annual basis.

Multiple urban starts were down six per cent to 102,289 units on the same basis, while single-detached urban starts segment increased by 3.4 per cent to 60,869 units on the same seasonally adjusted basis.

Urban starts in January increased in the Prairies and in Ontario and fell in Atlantic Canada, Quebec and British Columbia.

The month-over-month results came as CMHC also said its six-month moving average of the monthly seasonally adjusted annual rate slipped to 191,456 units in January compared with 194,518 in December.

"The trend in housing starts decreased slightly in January, while the inventory of newly completed and unabsorbed units saw a modest downward trend in the last half of 2013," said Mathieu Laberge, deputy chief economist at CMHC.

"This is consistent with our expectation that builders will continue to gradually adjust activity in order to manage their levels of inventory."

Last week, CMHC predicted builders will likely reduce housing starts in 2014 and 2015 as they adjust to rising interest rates and a slowdown in demand from first-time buyers.

CMHC estimates there will be about 187,300 housing starts in 2014, with a range of between 176,600 and 199,800 units on an annual basis.

That's relatively unchanged from 187,923 units in 2013.

In 2015, CMHC estimates about 184,900 units, with a range from 163,200 to 206,600 units.

The Canadian Press


Read more Business News

23479


Recent Trending




Today's Market
S&P TSX14960.51-16.41
S&P CDNX909.29-3.47
DJIA17042.90-28.32
Nasdaq4493.39-12.462
S&P 5001972.29-5.51
CDN Dollar0.8919-0.0011
Gold1206.50-5.10
Oil89.83+0.07
Lumber333.20+0.30
Natural Gas4.134+0.013

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.26+0.03
Cantex0.065-0.025
Anavex Life Sciences0.184-0.001
Metalex Ventures0.0550.00
Russel Metals34.57+0.08
Copper Mountain Mining2.42-0.10
Colorado Resources0.165+0.015
ReliaBrand Inc0.019-0.001
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.32-0.02

 



23437

FEATURED Property
20862243848 Water Road
10067621 bedrooms
$1,299,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...


Finding the smart money

Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...

_








Member of BC Press Council


23504