Recent data analysis from the Canada Mortgage and Housing Corporation shows the seasonally adjusted annual rate of housing starts dropped to 197,900 units in January.
In December 2011, housing starts reached 199,900 units, but that number took a hit at the start of the new year. The seasonally adjusted annual rate of urban starts dropped 2.8 percent to 176,600 units in January and urban single starts dropped 7.8 percen to 64,900 units.
“The slight decrease posted in January was attributable to a decrease in Quebec and in Atlantic Canada," said Mathieu Laberge, deputy chief economist at CMHC’s Market Analysis Centre. “The multiple starts segment accounted for most of the reduction in those two regions.”
Canada is also in the midst of a critical situation surrounding mortgage rates. A Mortgage Rate Outlook Panel recently announced that it is expecting both variable and fixed mortgage rates to remain level during February. This announcement comes in contrast to recent fluctuations in fixed and variable mortgage rates that have confused many Canadians on where mortgage rates are headed in the coming months.