Falling loonie slows housing starts

By WM

The pace of new housing starts in Canada slowed down in January with a sharp drop in multiple-unit homes, an indication builders are adjusting to a slowdown in buyers, according to the Canada Mortgage and Housing Corporation (CMHC), reports CBC News.

A CMHC estimation notes there were 11,737 new builds constructed in January and that is extrapolated to a seasonally adjusted annual rate of 180,248. In December 2013, that rate was 187,144.

The loonie experienced a slight decline, falling to 90.45 cents US. That eliminated the gains it made Friday as the Canadian employment fell to 7 per cent. It closed down 0.13 of a cent to 90.46 cents U.S. 

Bank of Canada governor Stephen Poloz is hoping for a “soft landing” for Canada's housing market, which experienced a 10 per cent increase in prices in 2013.

The CMHC did not indicate if it believed the extreme cold exeperienced country-wide in January affected housing starts.



 

More Mortgage Guide