Current economic indicators table

Key economic indicators report

 

 

Housing starts slip

Latest available: June 2008
Release date: July 9, 2008

 

Housing start came in at a 217,800 annualized pace in line, in line with market forecasts for a 216,000 unit rate. May starts were revised higher to 227,700 annualized units from the preliminary report of 221,300. Housing starts activity slowed to average 220,000 from 234,300 units at an annualized rate in Q1 but remained above the 200,000 unit mark signaling that housing starts activity, although slower, remains healthy.

 

The decrease in the month reflected softening in both the urban singles component (-7.8%) to an annualized 74,600 units and urban multiples component which fell 3% to 114,700. On a geographical basis, four of the five major regions showed declines in the month with double-digit drops in the Atlantic region (-12.4%), Quebec (-11.6%) and the Prairie region (-20%) and a more moderate 9.5% decline in British Columbia. The only region to show an increase was Ontario where starts popped up by 10.8% reflecting a rebound in the multiples component.

 

Housing starts activity slowed in the second quarter although remaining at historically high levels. The average level in the second quarter was down 6.2% relative to the first quarter average. Single detached homes, usually a more stable indicator of the trend in housing, slipped 7.6%. The slowing in the single-home component is in line with the steady deterioration in housing affordability throughout 2007. Still, the strong labour market and solid wage gains are keeping Canada's housing market on a much firmer path than the US housing market which remains in a deep downturn.

 

New housing price index holds steady

Latest available: May 2008
Release date: July 11, 2008

Canada's new housing price index held steady in May and was 4.1% higher than a year ago, marking the slowest pace of increase on a year-over-year basis in almost six years.  The house-only index feeds into the CPI calculation and was 3.6% higher than a year earlier, down from 4.9% in April and continuing the downtrend from the cyclical peak of 12.9% (August 2006). Saskatchewan cities continued to post the strongest gains, with prices in Regina up 30.4% relative to a year ago and Saskatoon prices up 30.2%.