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

Hi Neighbour Day celebrates 50th year in Errington

Pancake breakfast, parade, zucchini race and more planned for this years’ festivities

Semi-truck crashes on Hwy. 4 between Port Alberni and Tofino-Ucluelet

Drivers heading in or out of Tofino-Ucluelet Friday afternoon should expect delays

Errington scrap wood fire still under investigation

Three fire departments deployed to battle highly visible blaze

Take a trip through time at Children’s Museum Day in Qualicum Beach

Free event teaches children about pioneer life, arts and crafts

Kidfest returns to Parksville Community Park this Sunday

Annual event offers fabulous fun for families

Fashion Fridays: How to dress and feel powerful

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

‘Easy Rider’ star Peter Fonda dies at 79

Actor and writer was nominated for an Oscar for co-writing the 1969 psychedelic road trip movie

Excavators help cute kid who copied their dig with his toys stay “safe at work”

Carson Carnegie wakes up at 7:00 am every morning to watch construction work on his street

Bob Lenarduzzi out as Vancouver Whitecaps president

MLS team is at the bottom of the Western Conference standings

B.C. daycare operator denies negligence in death of ‘Baby Mac’

Infant died in early 2017 after biting an electrical cord, according to a lawsuit filed by his mom

BC SPCA reopens animal cruelty investigation at Abbotsford pig farm

Additional alleged footage released from Excelsior Hog Farm sparks new investigation

RCMP on Vancouver Island seek information on alleged ‘breaking out’ bandit

Man alleged to have hid in Nanaimo business washroom ceiling overnight, took monitors

Donor upset no one noticed B.C. school’s sculpture had been missing for a year

Agassiz’s Fraser River Lodge owner baffled how theft went undetected

Purple fentanyl among items seized in B.C. drug bust

Youth being recruited as drivers for more-established drug dealers, police say

Most Read