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

Seasonally adjusted annual rate fell 2.5 per cent month-over-month to 221,202 units in September

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.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

BCHL: Alberni Valley Bulldogs drop a close game in Parksville

Spruce Kings come back from a 3-0 deficit to win 4-3

Student volunteers will be talking recycling at your doorstep

Alberni-Clayoquot Regional District is conducting a survey of homes

Teacher says student was ‘happy’ to watch smudging ceremony at Port Alberni school

B.C. Supreme Court in Nanaimo hearing case over indigenous cultural practice in classroom

Talks between Western Forest Products and union break down

No more negotiations imminent between United Steelworkers 1-1937 and company

ARTS AROUND: ‘Tis the season for Christmas crafts

Mistletoe Market headed to the Rollin Art Centre

VIDEO: ‘Climate emergency’ is Oxford’s 2019 Word of the Year

Other words on the shortlist included ‘extinction,’ ‘climate denial’ and ‘eco-anxiety’

Algae bloom killing farmed fish on Vancouver Island’s West Coast

DFO says four Cermaq Canada salmon farms affected, fish not infectious

Three cops investigated in connection to ex-Vancouver detective’s sexual misconduct

Fisher was convicted in 2018 after pleading guilty to kissing two young women who were witnesses in a criminal case

Violence response procedures updated for B.C. schools, police

ERASE program expands to target gangs, bullying of students

A pawsitive ending: Missing puppy found after nine-day search in Chilliwack

Pit bull Frankie ran from dog sitter booked through app

One person injured in rollover crash on the highway in Nanaimo

Accident happened a little after noon in southbound lanes near Cedar Road

Federal laws at heart of West’s anger up for debate, as Liberals begin outreach

Vancouver mayor to Trudeau’s western critics: ‘Get over yourselves’

Snowboard pioneer Jake Burton Carpenter dies at 65

He was diagnosed with testicular cancer in 2011

Most Read