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Economic News - Canada: 160.6K Housing Starts In January

ByThe National Bank of Canada
Published 02/10/2013, 05:21 AM
Updated 05/14/2017, 06:45 AM
NWSA
2.00%
IMOB
-2.46%
FACTS:

Canadian housing starts decreased 18.5% to 160.6K units in January (top chart). Urban starts decreased 22.3% to 138.1K. Single urban starts decreased 11.2% to 59.3K units, while multiple urban starts decreased 28.9% to 78.8 units. Rural starts were almost unchanged at 22.4K. On a regional basis, starts dropped in 5 provinces out of 10, but the largest declines were in Ontario (-33.5K or -43.4%) and Quebec (-10.5K or -24.6%).
Starts dived to 160.6K units in January
The drop concentrated in multiple starts in Montreal and Toronto
OPINION: The unexpected dive in housing starts in Canada in January is coming mostly from multiple starts in GTA and Montreal (middle chart). We think that the January figures were negatively impacted by unusually cold weather. As such, we think that a rebound is in the cards in February. Having said this, the downward trend at the national level that started a few months ago will continue to prevail in the next few quarters. This downward trend reflects softer market conditions in some important urban areas. For instance, RealNet just reported that the inventory of unsold apartments in high rise projects in the GTA reached a new record in Q4, for a second quarter in a row. In a report published this morning, Greater Montreal Real Estate Board reports that in January existing home sales were down 14% from a year ago while active listings were up 9%. According to the Real Estate Board of Greater Vancouver, the resale market evolved similarly with sales down 14% and active listings up 5.6%.

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