CMHC Predicts a Soft Landing for Canada’s Housing Market
By Lucas on May 08, 2014
The Canada Mortgage and Housing Corporation (CMHC) released its Housing Starts report for April 2014, predicting a soft landing for Canada’s housing market.
National housing starts were trending at 183,515 units in April, compared to 184,602 in March. This is a six-month moving average of monthly seasonally adjusted annual rates (SAAR). The numbers have been modified to eliminate seasonal variation and multiplied by 12 to get an annual reading.
The standalone monthly SAAR for April was 194,809 units, a significant increase compared to the 156,592 in March. The SAAR of urban starts was 176,792. The SAAR of multiple urban starts was 117,612 units, and 59,180 units single-detached homes.
Urban starts increased in Ontario, The Prairies, and Quebec, while Atlantic Canada and British Columbia saw decreases.
CMHC estimates the SAAR rural starts (areas with a population less than 10,000) at 18,017 for April 2014.
“In April, the trend in housing starts was essentially stable at 183,515 units. This is in line with CMHC’s analysis indicating that the new home construction market in Canada is headed for a soft landing in 2014,” said Mathieu Laberge, Deputy Chief Economist. “Over the remainder of the year, builders are expected to continue to adjust activity, particularly with respect to multiples, in order to manage inventory levels.”
