The CMHC says slightly less than 18,000 new housing units were built in cities across Canada throughout July. The CMHC estimates that 192,853 new homes will be built by the end of 2013 based on the current monthly total.
The annual prediction is 944 units less than the 193,797 units predicted at the end of June. The decline places the housing market below the market expectation of 193,500 new units by the end of the year.
Mathieu Laberge, CMHC Deputy Chief Economist, says the new housing starts data follows the trend set by the sales of existing homes. Home sales were down nationally over the first six months of the year as fewer Canadians applied for home mortgage loans. Laberge states that new housing developments are interconnected with existing home sales.
“As expected, the trends in the two market segments typically follow a similar pattern with the new home market lagging behind the existing home market by a few months.”
Development was down across Canada with the exception of British Columbia, where housing starts rose in July.