Canada ‘slipping' claims expert

New figures have revealed more evidence of ‘moderation’ in the Canada property market…

According to new figures from Canada’s Federal Housing Agency (FHA) housing construction eased in April, dropping by a greater-than-expected 12% to a seasonally adjusted rate of 213,900. On the other hand, for the first four months of 2008, housing starts were up 3.3% from the same period a year earlier.

Canada Mortgage and Housing Corp. chief economist Bob Duga observed: "Housing starts in April moderated from the high levels posted in February and March. Despite the decline, starts remained robust at over 200,000 units."

TD Securities analyst Millan Mulraine added: "The report adds to the growing evidence that the Canadian housing market may be slipping a little, though the moderation in activity is in no way comparable to the recession that the U.S. housing sector continues to face. And on an absolute basis, the level of activity remains fairly healthy."

Housing starts in urban areas fell in all regions except British Columbia, where there was an increase of 17.1%, CMHC said.