Pace of Canadian housing starts slowed in September but less than expected

OTTAWA — The pace of Canadian housing starts slowed in September compared with August, but still came in better than expected.

Canada Mortgage and Housing Corp. said Tuesday the seasonally adjusted annual rate fell 2.5 per cent month-over-month to 221,202 units in September compared with 226,871 in August.

However, economists on average had expected an annual pace of 214,500 for September, according to financial markets data firm Refinitiv.

“This continues to reflect strong demographic demand, both from international inflows and new households created within Canada,” said Robert Kavcic, a senior economist at Bank of Montreal.

“There’s a lot of homebuilding activity going on across the vast majority of Canada.”

The overall decrease in the rate of housings starts last month came as the pace of urban starts fell 2.4 per cent to 208,503 units.

Urban starts of apartment, condo and other types of multiple-unit housing projects dipped 0.2 per cent to 159,742, while starts of single-detached urban homes fell 9.2 per cent to 48,761 units.

Rural starts were estimated at a seasonally adjusted annual rate of 12,699 units.

The six-month moving average of the monthly seasonally adjusted annual rates of housing starts was 223,507 in September, up from 218,782 in August.

The CMHC’s monthly report follows industry figures that show home sales have been stronger than last year and stronger than the early months of 2019.

Last month, the Canadian Real Estate Association raised its 2019 forecast sales of existing homes to 482,000 units, up five per cent from 2018.

“Canada’s housing sector is back on the front foot with resales picking up as the year progresses and homebuilding activity clearly displaying some momentum,” Josh Nye, a senior economist at Royal Bank, said Tuesday.

“Ontario, the Prairies and Atlantic Canada are on the rebound while the trend in B.C. and Quebec remains strong despite slower starts in the last month or two.”

In a separate report, Statistics Canada said Tuesday the value of building permits issued by Canadian municipalities rose 6.1 per cent to nearly $9.0 billion in August.

The value of permits for multi-family dwellings increased 18.8 per cent to $3.3 billion in August, while the value of permits for single-family homes rose 3.2 per cent to $2.4 billion.

Industrial permits rose 18.9 per cent to $675 million, while commercial permits fell 5.9 per cent to $1.9 billion. Institutional permits slipped 10.7 per cent to $651 million.

Just Posted

Repeat rent-dodger dubbed ‘professional squatter’ prompts call for reform

HALIFAX — A Halifax coffee shop owner who says he tried for… Continue reading

Alberta introduces legislation allowing access to partner’s criminal records

EDMONTON — Alberta is introducing legislation first developed in Britain that allows… Continue reading

Pilot projects to improve communication links between RCMP and community peace officers underway

Communciations gaps have been raised as safety concern by rural municipalities

Broncos families head to Alberta legislature to fight for trucking changes

EDMONTON — Alberta families affected by the Humboldt Broncos bus crash say… Continue reading

Cannabis edibles and vaping are on the way

Red Deer stores welcome opportunity to educate

Your community calendar

Wednesday Red Deer River Naturalists Flower Focus Group Meeting. When: Oct. 16… Continue reading

Repeat rent-dodger dubbed ‘professional squatter’ prompts call for reform

HALIFAX — A Halifax coffee shop owner who says he tried for… Continue reading

Beef recall expands as Toronto slaughterhouse co-operates with food watchdog

A large recall of raw beef and veal products continued to expand… Continue reading

Alberta introduces legislation allowing access to partner’s criminal records

EDMONTON — Alberta is introducing legislation first developed in Britain that allows… Continue reading

A&W reports slower sales growth while net income falls short of expectations

VANCOUVER — A&W Revenue Royalties Income Fund saw sales growth slip in… Continue reading

Broncos families head to Alberta legislature to fight for trucking changes

EDMONTON — Alberta families affected by the Humboldt Broncos bus crash say… Continue reading

Gardening: Keep your trees free from snow

Plants react differently to late snowfalls in the spring and early ones… Continue reading

2 writers claim they deserve credit on Lizzo’s ‘Truth Hurts’

NEW YORK — There’s a debate about the truth behind Lizzo’s “Truth… Continue reading

Most Read