‘The trend in housing starts for Canada reached its highest level in almost five years. So far this year, all regions are on pace to surpass construction levels from 2016 except for British Columbia.’ – Bob Dugan, CMHC
Canada’s housing starts increased more than expected in June, with strong construction intentions being observed in the Toronto region and downward trends in Vancouver. The Canadian Mortgage and Housing Corporation’s report showed on Tuesday that the seasonally adjusted yearly rate of housing starts in Canada rose to 213K in June, following the preceding month’s figure of 195K. Meanwhile, analysts anticipated an increase close to 200K in the reported month. While Canada’s housing market started to cool down, the more reliable six-month moving average rose to 215K, nearing the five-year high. The stronger-than-expected figures suggested that builders were proceeding with their projects despite a significant fall in home sales. Moreover, the solid growth in housing starts is expected to keep on contributing to the country’s economic growth as well as to provide one more reason for the Bank of Canada to raise interest rates. Analysts expect the Bank’s policy changes to lead to slightly weaker housing sector, with the most pronounced impact on Toronto and Vancouver, where prices were the highest.
