Global| Feb 08 2010Canada Housing Starts Rise Still It Is Stalked By The Threat Of A Stalled Rebound
Summary
Canada’s housing starts are in a dig-out phase. The sharp-seeming 5.8% rise this month only takes starts back toward their recent local peak. Starts are sharply up from their financial crisis low point but are still well short of [...]
Canada’s
housing starts are in a dig-out phase. The sharp-seeming 5.8% rise this
month only takes starts back toward their recent local peak. Starts are
sharply up from their financial crisis low point but are still well
short of being back at what has passed as normal activity levels in
recent years.
Building permits, which lag housing starts are up on strong growth over the past 3- 6- and 12-months
House price data that are current only through November, show a rise in November. House prices are up over three-months as well as the last six months. Over 12-months prices still are lower by 1.1%.
Canada’s housing market is still obviously struggling to recover. It has moved up strongly from the financial crisis lows. But momentum has become suspect. But suspect momentum is not the same as backsliding. Building permits continue to pile up albeit at a slower pace. Canada’s housing market seems to be suffering the same fate as recovery in many of the worlds leading markets. It has had a vigorous rebound but is flattening out or slowing its paces of increase well short of restoring its former level of activity.
| Canada's Housing Starts | |||
|---|---|---|---|
| Starts | Permit | House Prices | |
| Month-to-Month | |||
| Jan-2010 | 5.8% | -- | -- |
| Dec-2009 | 0.2% | 2.4% | -- |
| Nov-2009 | -6.5% | 11.5% | 0.5% |
| Sequential Growth | |||
| 3-Mo | -0.9% | 17.1% | 2.0% |
| 6-Mo | 34.2% | 42.5% | 2.0% |
| 12-Mo | 37.4% | 33.5% | -1.1% |
| From | Jan-2010 | Dec-2009 | Nov-2009 |
Robert Brusca
AuthorMore in Author Profile »Robert A. Brusca is Chief Economist of Fact and Opinion Economics, a consulting firm he founded in Manhattan. He has been an economist on Wall Street for over 25 years. He has visited central banking and large institutional clients in over 30 countries in his career as an economist. Mr. Brusca was a Divisional Research Chief at the Federal Reserve Bank of NY (Chief of the International Financial markets Division), a Fed Watcher at Irving Trust and Chief Economist at Nikko Securities International. He is widely quoted and appears in various media. Mr. Brusca holds an MA and Ph.D. in economics from Michigan State University and a BA in Economics from the University of Michigan. His research pursues his strong interests in non aligned policy economics as well as international economics. FAO Economics’ research targets investors to assist them in making better investment decisions in stocks, bonds and in a variety of international assets. The company does not manage money and has no conflicts in giving economic advice.
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