Canada’s housing construction levels declined in the final month of the year, but continued to remain strong despite a resurgence of Covid-19.
According to data released by the CMHC, home starts dropped 12.6% to an annualized 228,300 units in December, missing the Bloomberg median forecast of 230,000 units. The latest construction numbers suggest that Canada’s housing market is beginning to cool off, but still remains elevated as a result of historically-low interest rates and robust demand.
In the meantime, construction of new multi-family homes such as apartments and condos declined by 15% in December, while construction of single-family homes fell by 6%. Overall, housing starts suffered a decrease in all provinces, with the exception of New Brunswick and Alberta.
Information for this briefing was found via CMHC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.