Canada: Year-end housing starts collapse
January 11, 2016
Seasonally-adjusted annualized housing starts registered 173,000 units in December, according to the government-owned Canada Mortgage and Housing Corporation (CMHC), the lowest number of starts registered since February 2015. The figure marked a drastic 18.4% decrease over November’s revised 212,000 units (previously reported: 212,900 units) and markedly undershot market expectations of 200,000 units.
The six-month moving average fell by 2.3% over the previous month, from November’s 208,200 (previously reported: 206,110 units) to 203,500 in December. The CMHC commented that, “A decrease in both the multiple and single starts segments drove the December trend lower. Starts increased in 2015 compared to 2014, largely driven by the condominium market in Toronto. Had the Toronto condominium starts remained stable in 2015, national starts would have declined on a year-over-year basis.”
Author: Robert Hill, Economist