The pace of housing starts nationwide in September was considerably slower compared to the August output, according to new data from the Canada Mortgage and Housing Corp.
Latest figures showed that the seasonally adjusted annual rate of new home construction stood at 221,202 units in September. This represented a 2.5% slowdown from the 226,871 reading in August.
Experts have earlier predicted an annual pace of 214,500 for the month, according to financial markets data firm Refinitiv.
Urban starts also declined by 2.4% to 208,503 units, although apartments, condos, and other multi-unit developments ticked down by just 0.2% to 159,742.
Meanwhile, single-detached starts in urban markets fell by 9.2% to 48,761 units.
Despite these indications of deceleration, however, CMHC stated that home sales are still stronger compared to last year and the early months of 2019.
“This continues to reflect strong demographic demand, both from international inflows and new households created within Canada,” Bank of Montreal senior economist Robert Kavcic told The Canadian Press.
“There’s a lot of homebuilding activity going on across the vast majority of Canada.”
Sales are expected to continue accelerating, bolstered by lower rates and a growing consumer population.
The Canadian Real Estate Association recently adjusted its 2019 resale forecast up to 482,000 units, around 5% higher from 2018.
“Canada’s housing sector is back on the front foot with resales picking up as the year progresses and homebuilding activity clearly displaying some momentum,” RBC senior economist Josh Nye stated.
“Ontario, the Prairies and Atlantic Canada are on the rebound while the trend in BC and Quebec remains strong despite slower starts in the last month or two.”