Home building ‘quickly running out of steam’

Times Colonist- Housing construction in Canada is quickly coming off the boil, economists say, pointing to weaker-than-expected levels of new home starts in May.

The level of activity slipped 6.3% in the month to 189,100 units compared with expectations of 202,000 starts. April was revised up slightly to 201,800.

But “the details of today’s report were softer than the headline would suggest,” said Douglas Porter, deputy chief economist at BMO Capital Markets.

He cited the fact that the more important single-family component of starts fell for the second month in a row, off 14.1% after an 11.4% slide in April and now at an eight-month low. Multiple-unit starts also fell, down 5.6%…

Home building ‘quickly running out of steam’

Canadian home sales fall 2.6 per cent in April as market cools down

Vancouver Sun- The Canadian housing market is cooling, but the decline will be moderate, thanks to the rebound in the labour market, economists say.

Canadian home sales fell 2.6 per cent in April from the previous month, with residential sales totaling 52,042 units last month, 6.8 per cent below the peak reached in December 2009, the Canadian Real Estate Association said Monday.

Listings, meanwhile, rose to 99,901 homes newly being put up for sale, a record for the month of April that suggests balance is returning to what had been a sellers’ market.

On a seasonally adjusted basis, the months of housing inventory available rose to 5.3 months, the highest level since last May.

"Canada’s housing market has gone from full gallop to stately canter and is poised to slow to a leisurely trot in the months ahead," said Bank of Montreal deputy chief economist Douglas Porter…

Canadian home sales fall 2.6 per cent in April as market cools down

Is housing market moving from ‘big thrill to big chill’?

The Globe and Mail- Sales of existing homes fell again in April, down by 2.6 per cent on a seasonally adjusted basis, which economists said signals that the real estate market will continue to cool as mortgage rates rise and higher house prices take a toll. New listings are also rising as sellers are increasingly enticed by what has been a remarkable rebound from the depths of the recession. Sales have now dipped month-over-month for three months out of the past four.

Average prices rose 12.2 per cent in April from a year earlier, which, while robust, is the “mildest gain” since last summer, noted BMO Nesbitt Burns deputy chief economist Douglas Porter. Raising the question of whether housing is moving “from big thrill to big chill,” Mr. Porter said…

Is housing market moving from ‘big thrill to big chill’? – The Globe and Mail

Canadian economy grows 5%, tops forecasts

Globe and Mail- The Canadian economy expanded by a greater-than-expected 5 per cent in the fourth quarter, raising the likelihood of interest rate hikes later this year.

The country’s gross domestic product grew at the fastest annualized pace since the third quarter of 2000, Statistics Canada said Monday.

The economy’s burst boosts the odds of a string of rate hikes in the second half of the year. The Bank of Canada announces its interest-rate decision tomorrow, and while rates are on hold for now, the tone of the announcement could well acknowledge that growth is picking up speed at a faster pace than anticipated.

“This report shouts strength, and increases the odds the Bank of Canada will begin to hike interest rates in July and stay on that path in the following decisions,” said Douglas Porter, deputy chief economist at Bank of Montreal…

Canadian economy grows 5%, tops forecasts – The Globe and Mail