Toronto, ON, February 8--Canadian housing starts fell a surprising 13.8 percent in January, but should rebound later in the year as low interest rates and tight labor markets keep some life in Canada's housing boom, Canada Mortgage and Housing Corp. said on Tuesday.
The number of starts dipped to a seasonally adjusted annualized rate of 203,700 units from a revised 236,300 units in December, missing analysts' estimates of 230,000 starts, and denting the Canadian dollar.
"Despite the decrease in housing starts in January, the level of activity remains strong and the seasonally adjusted annual rate of starts is higher than it was in January 2004," Bob Dugan, CHMC's chief economist, said in a release.
He said favorable conditions should allow starts to top 215,000 for the full year. They hit a 17-year high of 233,431 last year.
Urban singles fell 8.1 percent to 93,900 units, while urban multiples dropped 21.5 percent to 81,400.
Rural starts were estimated at an annual rate of 28,400 units, down 6.6 percent from December.
