After a couple of months on a strong upward trend, housing starts declined in Canada in August, Canada Mortgage and Housing Corporation reports. Both the six-month trend measure and the seasonally adjusted annual rate (SAAR) were down significantly. The standalone monthly SAAR for Canada was 182,703, compared to 194,663 in July. CMHC chief economist Bob Dugan said in a release that the decline was largely the result of fewer multi-unit dwellings, especially in Alberta and Manitoba.

The decline in multiple urban building starts, including condominiums, is the market’s response to increasing levels of supply, said Dugan. “Multi-unit inventories are above average in several major markets across the country.” The decline in multi-unit starts was 7.3%. Only Quebec saw an increase in building activity.

Housing starts declined in August, as construction of multi-unit dwellings slowed in most regions, led by lower activity in Alberta and Manitoba. However, housing market activity levels remain elevated and this decline in starts is the market’s response to increasing levels of supply. Multi-unit inventories are above average in several major markets across the country.

In Ontario, the decline was less pronounced: the trend number fell from 74,867 in July to 73,731 in August, while the standalone SAAR declined from 72,493 to 69,328. The CMHC regional economist for Ontario, Ted Tsiakopoulos, commented that the trend in Ontario eased in August due to the “volatile” condominium sector and to a lesser extent the low density homes sector. Starts remain “elevated” nonetheless, he said. Despite the August decline, Ontario housing starts are running 11% higher that at the same time last year.

As in the province, so in the city. Toronto’s trend line dipped slightly, from 43,331 in July to 42,103 in August, fewer condo starts being the reason. However, the standalone SAAR for Toronto was actually up, from 39,846 in July to 40,378 in August. The increase was mainly due to more single-detached and row house starts. Approximately 350 more single-detached homes were started in August compared to July.

New Home Construction Drops in August with Fewer Condo Starts by Josephine Nolan | Condo.ca