Concerns of Canada’s real estate market grew after housing starts declined quite dramatically in February. Official data from the Canada Mortgage and Housing Corporation was released today and shows a dramatic reduction in seasonally adjusted annual rate of housing starts.
As of February 2015, there were 156,300 unit starts down from January’s total of 187,000 units. Analysts had expected Canadian housing starts to dip to 179,000 units in February—a reduction of 10,000 or so units. Instead, starts dropped by almost 23,000 units.
A few months ago, CMHC predicted housing starts to range between 154,000 and 201,000 units in 2015, with a point forecast of 187,400 units.
“The trend in housing starts decreased for a fifth consecutive month in February and reflects a decreasing trend in multiple starts,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre.