Housing starts dip in January but beat forecasts
Canadian housing starts declined in January from December but were above expectations, with a slowdown in the multiple unit segment accounting for most of the weakness, Canada Mortgage and Housing Corp (CMHC)said on Wednesday.
The Globe and Mail reports a January decline in housing starts compared to December. The January rate of annualized housing starts was 197,900 units compared to December's rate of 199,900. Despite this decrease, the statistic is still above the expected rate of 194,000.
It has been suggested by the Bank of Canada that some markets have become overvalued, and building permits in December reached a 4 1/2 year high. However, regulators are closely monitoring the situation.
Although there is some concern on behalf of lenders that mortgage seekers are spending more than they earn, it is expected that the housing market will stabilize.