Pace of new homes declines in Canada


The seasonally adjusted annual rate of 184,700 homes started in August was down 9.7% from 204,500 starts in July. Bloomberg had reported a poll of economists had expected the August figure to be at 200,000.

Of the five Canadian regions, only the Prairies showed any positive gains in housing starts, rising 9.4% from 31,800 in July to 34,800 in August. While still down about 18% from the same eight-month period last year, Calgary totalled 1,237 units in August, up 44.2% from the 858 units in August 2010.

Winnipeg saw the most housing starts in any August since 1989, with 231, up 7.9% from the 214 in August 2010. In Edmonton, the highlight was the multi-family market, where the 311 starts in August were up 82% from the 171 in August 2010. For the seasonally adjusted annual rate, overall starts were up 16.7% to reach 850 from the 650 in July.

But outside of the Prairies, all other parts of Canada saw declines in urban starts. The biggest drop was in the Atlantic region, where the seasonally adjusted August total of 7,800 was down 41.3% from July’s 13,300. British Columbia and Ontario also saw double-digit declines over the same time period, down 15.3% and 11.9% respectively. Quebec was down 8.8%.

Still, the results were not beyond the expectations of Matthie Laberge, deputy chief economist with CMHC’s Housing Market Outlook.

“Housing starts in August were in line with current demographic fundamentals and are consistent with CMHC’s recent Housing Market Outlook,” he said.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

COMMENTS

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Should government update pot rules to prohibit growing in rentals?