According to a new report from the Canada Mortgage and Housing Corporation, housing starts climbed unexpectedly in June. Canadian housing starts hit 218,500 for the month.
The press release states that “the trend is a moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts. The standalone monthly SAAR was 222,700 units in June, up from 217,400 in May.”
According to an article in The Vancouver Sun, the number of starts in June exceeded expectations.
Analysts had previously forecast 205,000 starts in a Reuters poll. In The Vancouver Sun article, Emanuella Enenajor, CIBC World Market economist says that “we thought the data would be above consensus given a clear strengthening in the latest building permits reading, and today’s starts print confirmed that home building is showing no signs of cooling off yet.”
However, Mathieu Laberge, Deputy Chief Economist at CMHC’s Market Analysis Centre, notes that the “CMHC still expects the pace of housing starts to moderate as the year progresses.”