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Aug 23, 2023

Housing market looking positive despite high interest rates

New data from the Canada Mortgage and Housing Corporation has shown an uptrend for the housing market with an increase of 2.8% to 242,525 in June.

 

The standalone monthly seasonally adjusted annual rate (SAAR) housing starts for all areas in Canada also increased by 7.4%, which is above the five-year average. On the other hand, the total SAAR housing starts for all areas in Canada was down 10% in July compared to June, which was the strongest month this year so far.

 

"Despite a decrease in the SAAR of housing starts relative to last month, July saw a healthy number of actual housings starts from a historical perspective,” said Bob Dugan, chief economist at CMHC. “Market intelligence suggests multi-unit projects started in June and July were likely financed a few months prior, so, the effect of the most recent interest rate hikes on housing starts remains to be seen.”

 

The monthly SAAR of total urban starts was down 11% as well in July, while the rural starts monthly SAAR estimate was 20,019.

 

The Vancouver and Toronto CMAs also decreased in total SAAR housing starts in July, 23% and 29%, respectively. Meanwhile, the Montreal, Calgary, and Edmonton CMAs were up in terms of the total SAAR housing starts, recording increases of 12%, 33%, and 67%, respectively.

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