Canada Mortgage & Housing Corporation Releases September Housing Stats
CMHC has released its latest report tracking housing starts across Canada. They are reporting that housing starts fell to their lowest level in nearly two years in September. 188,683 units started last month, down from 198,843 in August.
This slowdown is attributed to rising interest rates from the Bank of Canada, and more restrictive mortgage rules.
What Do The Economists Say?
Sal Guatieri, a senior economist with BMO offered the following comments ” The September housing starts report fits with the relative calm and return to normality in sales, market balance and price growth that we are seeing across most of the country this year, in particular Toronto, following speculative excesses in Southern Ontario earlier last year and a moderate correction in response to policy measures earlier this year. Demand continues to be supported by the fastest population growth in 27 years and new millennial-led households. A calmer housing market is just what the doctor ordered, and won’t discourage the Bank of Canada from raising rates on Oct. 24.”
- British Columbia led the declines with a drop of 43.3 per cent
- Alberta also saw a drop of 34.8 per cent
- Ontario housing starts increased 21.3 per cent, led by Toronto condos
- Quebec was up 15.4 per cent.