The seasonally adjusted annual rate of housing starts reached 150,100 units in September compared to 157,300 units in August, Canada Mortgage and Housing Corp. (CMHC) said Thursday.

“The decline in housing starts in September is attributable to the volatile multiple starts segment,” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre. “However, starts of single homes, which are a barometer of the trend in housing markets, climbed in September to reach their highest level so far this year. The rebound in existing home sales and the upward trend in new home construction, support our expectation that housing demand has strengthened and that housing starts will be stronger in the second half of 2009.”

Economists had forecast 146,500 starts during the month, on an annualized basis.

The seasonally adjusted annual rate of urban starts declined by 5.2% to 131,500 units in September. Urban multiple starts decreased by 21.4% to 62,700 units, while urban single starts moved up 16.8% to 68,800 units in September.

September’s seasonally adjusted annual rate of urban starts increased by 11.8% in Ontario, decreased by 20.2% in Quebec, by 18.1% in British Columbia, and by 4.7% in the Atlantic, and was unchanged in the Prairies.

Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units in September.

IE