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.

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

Just Posted

Orcas spotted hunting north of Comox

Did you see the orcas in the area on Feb. 20? Ella… Continue reading

PHOTOS: Iconic aircraft at 19 Wing Comox entrance undergoes facelift

PHOTOS: Iconic aircraft at 19 Wing Comox entrance undergoes facelift

VIDEO: Comox airport’s Make-A-Wish send-off fit for a galaxy not so far away

Mattias Beck, 15, received an extra special start for Make-A-Wish trip

North Island Fiddlers hosting Spring Fling in Royston

Groundhog Day is long past, and Valentine’s Day has come and gone,… Continue reading

Comox Valley Citizens on Patrol celebrates 25 years of service

Comox Valley Citizens on Patrol Society (COPS) just celebrated its 25th year… Continue reading

Blair says RCMP have met Wet’suwet’en conditions, calls for end to blockades

The Wet’suwet’en’s hereditary chiefs oppose the Coastal GasLink project

Comox Valley Beefs & Bouquets for week of Feb. 18

More beefs to the tip-expecting server; a bouquet to BC Transit

Petition seeks to remove local police department from Lindsay Buziak murder case

American woman starts online petition in hopes of helping Buziak family

Health officials confirm sixth COVID-19 case in B.C.

Woman remains in isolation as Fraser Health officials investigate

Study says flu vaccine protected most people during unusual influenza season

Test-negative method was pioneered by the BC Centre for Disease Control in 2004

Saskatchewan and B.C. reach championship round at Scotties

British Columbia’s Corryn Brown locked up the last berth in Pool B

Resident discovers five discarded hog heads in Vancouver Island ditch

WARNING: Graphic image may be upsetting to some readers

B.C. lawyer, professor look to piloting a mental-health court

In November, Nova Scotia’s mental-health court program marked 10 years of existence

Development proposal in Courtenay stalled at third reading

A development proposal adjacent to the Crown Isle Resort and Golf Community… Continue reading

Most Read