Canadian housing market defies skeptics as starts top expectations
Canadian housing starts were stronger than expected in June and May figures were revised higher, according to data released on Tuesday, the latest report to show the property market rebounding from last year’s government-induced slowdown.
It appears that a soft landing for the Canadian housing market is beginning to take hold, according to reports of Canadian housing starts in May and June. June's seasonally adjusted annualized rate of new starts came in at 199,586 units, while analysts had expected 187,000 starts.
This information, released on the one year anniversary of the implementation of mortgage legislation designed to cool the presumably overheated housing market, shows further evidence Canada is not headed for the U.S.-style crash many had predicted. Demand has risen in Canada's key markets, mortgage rates are still hovering near historic lows, and many first-time buyers have been reported as saying the new legislation has not deterred them from seeking their dreams of home ownership.