The number of housing starts in Canada fell in June, but the previous month’s figure was upwardly revised which convinced economists the sector is not headed for a US-style meltdown.
Housing starts fell 4.3 per cent to a seasonally adjusted annual rate of 217,800 units last month from a revised 227,700 units in May.
Data from Canada Mortgage and Housing Corp (CMHC) came in ahead of the median estimate of analyst, who had expected 217,000 starts in June. Even though the June numbers showed the construction sector cooling, some economists predict the decline will not turn into the type of meltdown that has plagued the US housing sector since last year amid the sub prime mortgage crisis.
Bob Dugan, chief economist at CMHC said,
“Despite the decrease in June, total housing starts remain at high levels. This is mostly due to the multiple segments, which has been continuously above the 100,000 unit threshold since the beginning of the year.”