(Source: Canadian Press)
The number of homes built in July fell compared to the month before, but economists are calling it a “temporary bump on the road to recovery” as sales and building permits continue to rise from recent recessionary lows.
Housing starts fell to a seasonally adjusted rate of 132,100 units in July, down from 137,800 units in June, the Canada Mortgage and Housing Corp. (CMHC) said Tuesday.
The agency estimated there were 12,712 actual starts last month, down from 18,229 actual starts in July 2008.
Economists say the “volatile” condominium market is behind the July drop, along with extreme weather in places such as Ontario.
Urban starts fell 5.5 per cent in July to a seasonally adjusted 113,500 units compared to June, with multiple starts down nine per cent and singles off 1.1 per cent.
Every region except Quebec saw housing starts drop in July. Starts in Quebec rose 16.6 per cent, but fell 17 per cent in the Prairies, 15 per cent in Ontario, 10 per cent in British Columbia, and 1.4 per cent in Atlantic Canada.
Read Brenda Bouw’s full release “Housing starts down in July but expected to rise later this year” in the Canadian Press (August 11, 2009).
“Toronto housing starts drop” (Toronto Star, August 11 2009).