MNI: Canada Sept Housing Starts Weaker Than Expected - CMHC

By Yali N'Diaye      

     OTTAWA (MNI) - Canadian housing starts fell 5.1% in September to a

seasonally adjusted annual rate of 188,683 units, marking the third consecutive

decline after having peaked at 247,011 in June, data released Tuesday by Canada

Mortgage and Housing Corporation showed.

     Analysts' forecasts in a MNI survey had centered on 210,000 units, with

even the low end of the forecasting range of 195,000 above the actual reading.

In addition, the estimate for August was revised down to 198,843 units from

200,986. With September's decrease, the monthly average is now 213,403.

     As a result the six-month trend declined to a 19-month low of 207,768 from

213,966 in August.

     "The slowdown in the pace of new residential construction activity in

recent months is a result of both lower single-detached and multi-starts

activity and brings new residential construction closer to its long run average

from the elevated levels registered in 2017," said CMHC Chief Economist Bob

Dugan.

     Regionally, Toronto and Vancouver diverged, with housing starts falling 42%

in Vancouver, where activity was down both for single detached homes and

multi-family dwellings. That being said, CMHC said demand for housing remained

"strong" in the area.

     Overall, housing starts fell 43% in British Columbia.

     In Toronto, on the other hand, housing starts rose 45%, led by multi-family

dwellings, which lifted the six-month trend. Housing starts were up 21% in

Ontario.

     The Canadian housing market has been slowing down from last year as more

stringent macro prudential rules were implemented at the beginning of the year,

combined with ongoing monetary policy tightening.

--MNI Ottawa Bureau; +1 613 869-0916; email: yali.ndiaye@marketnews.com

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