Canada Mortgage and Housing Corp. today reported that the number of housing starts in Canada moved higher in June.

The seasonally adjusted annual rate of starts grew 10,000 from May, to 232,200 units, CMHC said.

However, “much of the increase came from the volatile multiple segment of the new-home market,” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre. “Even with the strong showing in June, housing starts ended the second quarter more than nine% below their first-quarter level.”

CMHC added that the bellwether single/detached component came in at its second-lowest level of the year, only marginally above the May level.

“We expect the level of activity to moderate in the second half of 2006 as rising prices and marginally higher mortgage rates result in a softening of demand for both existing and new homes,” added Dugan.

The seasonally adjusted annual rate of urban starts increased 5.2% to 201,100 units.

Urban single homes were up 1.1% to 92,400 units in June over May, while multiples jumped nine% to 108,700 units.

British Columbia recorded the strongest increase, with urban starts rising 14.8%.

The Atlantic region followed closely with starts up 12.3%.

In the Prairie region, Ontario and Quebec, urban starts were up 6%, 2.8%, and 0.3%, respectively.