Canadian Starts Dip 4.5% through August

Housing starts in Canada came in higher than expected in August, but the first eight months’ total for 2007 lag behind the same period of 2006 by 4.5%. That’s according to the Canada Mortgage and Housing Corporation, which pegged August’s seasonally adjusted annualized rate at 226,500 units. Said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre, “Despite the increase in August, the pace of housing starts remains consistent with our view that residential construction will decrease gradually between now and the end of 2008.”
CMHC expects there will be 220,000 starts in Canada during 2007 and that starts will cool to 207,200 units next year.