The seasonally adjusted annual rate of housing starts declined to 153,500 units in January from 172,200 units in December of 2008, Canada Mortgage and Housing Corp. (CMHC) said Monday.

“To a certain extent, the decline in housing starts coincides with recent developments in the existing home market. Reduced sales and increased listings in the existing home market have led to reduced spillover demand in the new home market,” said Bob Dugan, chief economist, CMHC, in a release.

The seasonally adjusted annual rate of urban starts decreased 15.6% to 126,700 units in January. Urban multiple starts decreased 12.2% to 76,700 units, while urban single starts fell 20.2% to 50,000 units in January.

January’s seasonally adjusted annual rate of urban starts moderated in all of Canada’s five regions. Urban starts declined 8.6% in Atlantic Canada, 1.4% in Quebec, 14.6% in Ontario, 30.3% in the Prairies, and 29.1% in British Columbia.

Rural starts were estimated at a seasonally adjusted annual rate of 26,800 units in January.

Actual starts in rural and urban areas combined decreased by an estimated 29.2% in January this year compared to relatively high levels in January last year. Actual starts in urban areas have decreased by an estimated 40.4% compared to the same month in 2008. Actual urban single starts for 2009 are 44.2% lower than they were a year earlier while urban multiple starts are down 38.1%.

IE