Canadian housing starts fell by 22% in November from the previous month, missing estimates by a wide margin, as higher borrowing costs hurt groundbreaking on multiple unit and single-family detached urban homes, data from the national housing agency showed on Friday.
The seasonally adjusted annualized rate of housing starts fell to 212,624 units from a downwardly revised 272,264 units in October, the Canadian Mortgage and Housing Corporation (CMHC) said. Economists polled by Reuters expected starts to decrease to 257,100 in November.
As the more difficult borrowing conditions and labour shortages now seem to be showing in the starts numbers, we can expect to see continued slower starts rates in the coming months, according to CMHC’s deputy chief economist Kevin Hughes.
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