The seasonally adjusted annual rate of housing starts was 254,700 units in March, slightly down from 255,600 units in February, Canada Mortgage and Housing Corp. (CMHC) reported today.

“The high level of starts posted in February continued in March, thanks to the multiple segment and particularly condominium starts, which registered a significant rise in Alberta” says Bob Dugan, chief economist at CMHC’s Market Analysis Centre. “Nevertheless, the single-detached component, which is usually a strong trend indicator, decreased slightly. This is consistent with our view that the housing market will moderate gradually throughout 2008.”

In March the seasonally adjusted annual rate of urban starts edged down by 0.4% to 221,500 units compared to February. Urban multiples were up 1.1% to 141,000 units, while singles decreased 2.9% to 80,500 units.

The seasonally adjusted annual rate of urban starts went down in three of Canada’s five regions in March. Urban starts registered a decrease of 2.3% in Ontario, 16.8% in Quebec and 37.1% in British Columbia. Meanwhile, urban starts jumped in the Atlantic and the Prairies with increases of 75.0% and 52.5%, respectively. These significant increases were mainly attributable to the urban multiple start segment which posted declines in the other regions of the country. Urban singles were up in all regions except Quebec and Ontario.

Rural starts were estimated at a seasonally adjusted annual rate of 33,200 units in March.

For the first quarter of 2008, actual starts, in rural and urban areas combined, were up an estimated 12.8% compared to the same period last year. Actual starts in urban areas alone increased by an estimated 15.8% year-to-date. Actual urban single starts for the first three months were 10.7% lower than they were a year earlier, while multiple starts increased by 35.6% over the same period.