Multi-Unit Dwellings Pullback Contributes to Lowest Level in Nine Months

  • Canadian housing starts dropped by 22% in August
  • Lowest level in nine months
  • Construction of multi-unit dwellings like condos and row houses caused the decline
  • Total units: 217,405 on a seasonally adjusted annualized basis
  • Missed market expectations by a wide margin
  • Trend measure fell 2.9% to 248,480 units
  • Existing-home sales down 2.1% from last year
  • Prices unchanged from prior month but down 4% from August of last year
  • Urban centers with populations over 10,000 saw a 24% drop in housing starts
  • Biggest decline in Ontario and British Columbia

Canadian housing starts plunged by 22% in August, reaching their lowest level in nine months due to a significant decrease in the construction of multi-unit dwellings such as condominiums and row houses. The Canada Mortgage and Housing Corp. reported that the total seasonally adjusted annualized units were 217,405, a considerable drop from July’s numbers. This result missed market expectations by a wide margin, with economists at Bank of Nova Scotia anticipating housing starts to reach 245,000. The trend measure fell 2.9% to 248,480 units. Real-estate activity remains sluggish despite the Bank of Canada’s rate-cutting cycle expected to continue through the first half of next year. Unadjusted existing-home sales in August dropped by 2.1% compared to last year, while prices remained unchanged from the previous month but declined 4% from August of last year. The CMHC monthly report revealed that housing starts in urban centers with over 10,000 residents fell 24%, led by a nearly 30% drop in multi-unit dwellings. The last time housing starts reached such low levels was in November of the previous year at 210,678.

Factuality Level: 9
Factuality Justification: The article provides accurate information about the decline in Canadian housing starts and includes relevant data from the Canada Mortgage and Housing Corp. It also mentions market expectations and compares the current situation to previous months and years. The article is not sensationalist or opinionated, and presents facts without any personal perspective.
Noise Level: 3
Noise Justification: The article provides relevant information about the decline in Canadian housing starts and mentions specific numbers and comparisons to previous months and years. However, it lacks analysis or exploration of potential causes or consequences, as well as actionable insights for readers.
Public Companies: Bank of Nova Scotia (BNS)
Key People: Paul Vieira (Author)

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Financial Relevance: Yes
Financial Markets Impacted: The drop in Canadian housing starts impacts the construction industry and homebuilders’ stocks, as well as the overall economy.
Financial Rating Justification: This article discusses a significant decrease in Canadian housing starts, which can affect the construction industry and related companies, as well as impacting the broader economy.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text and it does not meet the criteria of an extreme event happening in the last 48 hours.
Move Size: The market move size mentioned in the article is a 22% drop in housing starts from the prior month.
Sector: Real Estate
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

Reported publicly: www.marketwatch.com