The seasonally adjusted annual rate of housing starts was 201,000 units in August, down from July’s 242,600, but the market remains strong, the Canada Mortgage and Housing Corporation reported today.

“Despite the decrease in August, housing starts in Canada have now been above the 200,000 level for 27 consecutive months. Housing market fundamentals remain strong with high employment levels and low mortgage rates,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Most of the decline occurred in the multiple starts segment which is more volatile than single starts on a monthly basis.”

August housing starts in Canada’s urban centres fell 19.6% to a seasonally adjusted annual rate of 170,300 units. Urban single detached starts decreased 4.7% to 85,400 in August while urban multiples decreased 30.6 % to 84,900.

Urban housing starts in August decreased in three regions and rose in two. In Ontario, the seasonally adjusted annual rate of urban starts went down 36.6% as Toronto multiple starts fell from July’s exceptionally high level. Starts dipped 17.4 per cent in Quebec, where multiples were also a major factor and 9.4% in British Columbia. The Prairies posted a modest increase of 0.8%. Starts were up 21.3% in the Atlantic region with residential construction rising in all four provinces.

Rural starts in August were estimated at a seasonally adjusted annual rate of 30,700 units.

For the first eight months of 2005, actual urban starts were 5.6% lower than for the same period in 2004. Year-to-date single starts decreased 11.0%, while multiple starts increased 0.2% compared to the same period last year.