The seasonally adjusted annual rate of housing starts was 225,500 units in June, down from 235,200 units in May, according to a report released today by Canada Mortgage and Housing Corp.
“Following a significant increase in May, the volatile multiple segment lost most of the ground it gained in June,” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre, in a release. “Although housing starts will remain high in 2007, they are expected to resume a gradual decreasing trend. This is confirmed by the single detached component, which is slightly below the levels of the last two years.”
The seasonally adjusted annual rate of urban starts decreased 4.8% to 192,600 in June compared to May. Urban singles were up 2.1% to 92,200 units in June, while multiple starts decreased 10.4% to 100,400 units.
In June, seasonally adjusted urban starts went up in three out of five regions. Urban starts registered an increase of 12.8% in Quebec, 6.8% in the Atlantic, and 3% in British Columbia, while they decreased by 5.8% in the Prairies and 19.4% in Ontario. Urban single starts were up in all regions. Urban multiple starts declined only in the Prairies and Ontario, by 15.2% and 35.8%, respectively. These decreases offset the significant increase in urban multiple starts of 18.6% registered in Quebec.
Rural starts were estimated at a seasonally adjusted annual rate of 32,900 units in June.
Actual starts, in rural and urban areas combined, were down an estimated 3.8% in the first half of 2007 compared to the same period in 2006. Actual starts in urban areas alone were down an estimated 4.7%. Actual single starts in urban areas were 7.5% lower than they were a year earlier, while actual urban multiple starts edged down 2.1%.