Josh Nye, senior economist at the Royal Bank of Canada, notes that the Canadian housing starts were close to expectations, falling to 202k annualized units in May from 233k in April.
“The six-month trend was also 202k, which is the slowest pace in more than two years.”
“May’s pullback was concentrated in multi-unit starts though the trend in that component remains solid.”
“A separate report saw building permits jump to their highest level since 2005, largely due to a surge in BC ahead of an increase in development costs in Vancouver.”
“We expect starts will continue to slow gradually as the year progresses, albeit remaining at fairly solid levels thanks to ongoing strength in the multi-unit segment.”