A condominium building under construction is seen in downtown Toronto, May 14, 2009. REUTERS/ Mike Cassese
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ShareCanada housing starts rise 5.4 percent in October
November 09, 2009TORONTO (Reuters) - Canadian housing starts rose 5.4 percent in October, slightly weaker-than-expected but resuming its upward trend, a further sign on Monday that the housing sector remains a cornerstone of the country's economic recovery.
Starts rose to a seasonally adjusted annualized rate of 157,300 units from a downwardly revised 149,300 units in September, Canada Mortgage and Housing Corp said.
The number of starts in October was slightly below analysts' expectations who had expected 158,000 starts. September was previously reported as 150,100.
"This was a good report, and it adds to the growing list of indicators that have been pointing to a recovery in the Canadian housing market, though the rebound in residential construction has remain fairly modest," said Millan Mulraine, economics Strategist at TD Securities.
On a seasonally adjusted annual basis, urban housing starts increased by 5.2 percent to 139,900 in October as a hefty gain in multiple-unit buildings offset a small decline in single family homes.
New construction for condominium and apartment buildings climbed 13.8 percent to 72,600 units, while urban starts for single family homes fell by 2.7 percent to 67,300 units.
Rural starts were estimated at a seasonally adjusted annual rate of 17,400 units in October.
Housing has been a rare bright spot as the Canadian economy struggles to emerge from recession. The resale housing market has rebounded strongly this year, helped by low interest rates, while the pace of starts have been slower comparatively.
(Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)
