Housing starts fell by a greater-than-expected 7.6% in the month, following a surge in starts for August. According to CMHC, the events of September 11 had little impact on the data; it was driven by a pull back in Ontario. Still, year-to-date, activity remains up a solid 7% from 2000.

The weakness last month was mainly due to a 17.8% plunge in the volatile multiple-unit sector, notes BMO, which fully reversed a temporary spike in the prior month. The singles component fell by just 1.1%, remaining above both year-ago levels and the 12-month average. “Thus, the housing market appears to have maintained some solid underlying support, despite the variability of the headline data,” notes BMO. “Looking ahead, low mortgage rates and favourable affordability will likely help to offset some of the impact of the slowing economy on the housing market.”