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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Chilliwack man pleads guilty to violent assault of elderly man in Abbotsford

Victim, 85, attacked while waiting at bus stop in November 2019

Staff shortages plague Mission Institution following recovery from COVID-19 outbreak

Guards at 60% of workforce; inmates suffer daily with lockdown, mental health issues

Conair in Abbotsford donates $22,000 to Crystal Gala Foundation

Company challenges others to support foundation during COVID-19 pandemic

Long-term planning for jewel known as Vedder Greenway starts with survey

It’s the most popular trail system in Chilliwack with a half million local and LM users each year

Westbound Highway 1 stall in Langley blocking left lane

Congestion starting at 264th Street, crews on scene

B.C. counts 125 new COVID-19 cases, up to 1,284 active

No new deaths or health care facility outbreaks

Chilliwack man, 31, in critical condition after altercation at Langley university

RCMP received a report of an ‘agitated man’ on TWU campus

B.C. VOTES 2020: Wilkinson to stop 24-hour camping in city parks

Ban on ‘unsafe roadside panhandling’ to be enforced

Lessons from a pandemic: How to design a nursing home that’s safe and love-filled

A look at how one care home is battling the pandemic with the social needs of the elderly in their care

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Winter tires, chains now mandatory along most B.C. highways

Drivers without the proper winter tires – which must also be in good condition – can be fined $109

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Health Canada green-lights rapid COVID-19 test

Health Canada approved the BCube test from Hyris Ltd. in the United Kingdom Sept. 23

First Nations Health Authority chief medical officer concerned with rising COVID-19 cases

“There’s still so much we don’t know and we’re learning everyday about this particular virus.”

Most Read