A new home is under construction in North Vancouver, B.C., Tuesday, June 12, 2018. Canada Mortgage and Housing Corp. says the annual pace of housing starts picked up in June. THE CANADIAN PRESS Jonathan Hayward

CMHC reports pace of housing starts in Canada jumped higher in June

The housing report came a day ahead of the Bank of Canada’s next interest rate decision

The annual pace of housing starts picked up in June, the latest piece of economic data to paint a picture of a stronger second quarter.

Canada Mortgage and Housing Corp. said Tuesday the pace of housing starts rose to a seasonally adjusted annual rate of 245,657 units compared with 196,809 units in May.

The result topped the 210,000 units that economists had expected, according to Thomson Reuters Eikon.

Robert Kavcic, senior economist at BMO Capital Markets, said the result was yet another factor helping to drive a strong rebound in second quarter growth.

“Residential construction activity remains rock solid, as still-strong demographic flows are supporting unit demand,” Kavcic wrote in a note.

The housing report came a day ahead of the Bank of Canada’s next interest rate decision. The central bank is widely expected to keep its key interest rate target on hold on Wednesday when it also releases its latest monetary policy report.

READ MORE: CMHC reports pace of Canadian housing starts slowed in May, below estimate

The Canadian economy hit a weak spot at the end of 2018 that extended through the start of this year, however strength has been building in recent months as the Bank of Canada expected.

The increase in the pace of home starts came as the rate of urban starts increased by 26 per cent in June to 234,238 units.

The annualized pace of multiple-unit projects such as condominiums, apartments and townhouses increased by 31 per cent to 185,804 units last month, while the pace of single-detached urban starts rose eight per cent to 48,434 units.

Rural starts were estimated at a seasonally adjusted annual rate of 11,419 units.

TD Bank economist Rishi Sondhi said new home construction in Canada has continued to hold up well, in contrast to the home resale market.

“That said, starts are moving gradually lower on a trend basis, with the six-month average well off its near-term peak observed in late 2017,” Sondhi wrote.

“We anticipate some further moderation, as starts move closer to a more fundamentally supported level of around 200,000.”

The six-month moving average of the monthly seasonally adjusted annual rates was 205,838 units in June compared with 200,530 in May.

In a separate report, Statistics Canada said Tuesday the value of building permits issued in May fell to $8.2 billion compared with a record $9.5 billion in April.

The drop came as the value of permits for multi-family dwellings in British Columbia fell following a significant rise in April in response to impending increases in development costs.

The value of residential permits fell 17.2 per cent to $5.0 billion in May, following a 26.6 per cent increase in April.

The value of non-residential permits dropped 5.7 per cent to $3.3 billion in May.

ALSO READ: Victoria-area ‘inflatable home’ the first in Canada

The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Survivor of near-drowning in Elk Valley lake viewing life through new eyes

“If I died that day, the baby wouldn’t know his dad,” said 31-year-old Mariano Santander-Melo.

Cannabis stores in Fernie get green light, open in one month

Two cannabis stores in Fernie could be open for non-medical sales in… Continue reading

Annual Columbia Basin Culture tour coming up Aug 10 and 11

There are locations across the region participating

Structure fire near Elko quickly contained, spreading prevented

A quick response by local firefighters today prevented the spread of a… Continue reading

Stetski talks up NDP election platform

NDP candidate for Kootenay-Columbia riding outlines election ‘commitments’ to Canadian voters

Joaquin ‘El Chapo’ Guzman sentenced to life in prison

Experts say he will likely wind up at the federal government’s Supermax prison in Florence, Colorado

‘Beyond the call’: Teen in police custody gets birthday surprise by B.C. Mountie

Unusual celebration started when Staff Sgt. Paul Vadik went to visit the teen in his Coquitlam cell

Thunderstorms forecast across B.C.

Environment Canada has issued a thunderstorm watch for B.C.’s central Interior

B.C. mom to go to Europe court in hopes of getting alleged abducted daughter back

Tasha Brown alleges her estranged wife abducted their daughter Kaydance Etchells in 2016

Driver who killed B.C. motorcyclist receives absolute discharge

Chase family speechless following decision by BC Review Board

Lower gas prices slow annual inflation rate to Bank of Canada’s 2% bull’s-eye

Prices showed strength in other areas — led by a 17.3 per cent increase in the cost of fresh vegetables

B.C. moves to preserve 54 of its biggest, oldest trees

Fir, cedar, spruce, pine, yew set aside from logging

Report of dead body in B.C. park actually headless sex doll

This discovery, made at Manning Park on July 10, led police to uncovering two other sex mannequins

Grand Forks fire chief found to have bullied, harassed volunteer firefighter: report

WorkSafeBC, third-party human resources investigation looking into allegations complete

Most Read