Toronto, Ontario (PRWEB) November 20, 2012
The Canada Mortgage and Housing Corporation (CMHC) has revealed a slowdown in the country’s once booming housing market in terms of a decline in the housing starts for a second month in October. Marcus Arkan, CTO of Syndicate Mortgages, contemplated over the report released by CMHC which shows an 8.9 percent decrease from 223,995 units in September to 204,107 units in October.
The decrease in the housing starts as witnessed in October was felt across the country with significant declines in Quebec (-16.9%), Atlantic Canada (-16.8%), Prairies (-12.3%) and Ontario (-6.4%). According to Mathieu Laberge, CMHC deputy chief economist, the slowdown in housing starts was sharper than expected with the October forecast being 211,500 units from the adjusted September figure of 220,215 units.
The fall in overall housing starts were caused considerably by a decrease in urban single-unit (-7.6%) to 62,402 units and urban multiple-unit (-11.4%) to 119,732 units starts. However, a modest increase in rural starts (2.6%) to 22,000 provided a minor offset against the decline. Marcus Arkan assessed the seasonally adjusted annual rate of urban starts fell (10.1%) to 182,134 units in October.
Mr. Marcus Arkan points out that Canada Mortgage and Housing Corporation (CMHC) used such trend measure along with the monthly SAAR of housing starts so that a wholesome picture of the housing market can be obtained. He further elaborated that analyzing only SAAR data can give misleading results because of the segmented market.
Mark Carney, the governor of the Bank of Canada, expressed mixed feelings about the housing market’s strength over the coming years with housing investments expected to weigh down on the country’s economic expansion.
Mr. Marcus Arkan expressed his concerns about the volatility of Canada’s mortgage market as a result of tight federal lending policies. Expressing his positivity for future housing starts, Mr. Marcus Arkan said, “I am sure that the pace of home building would moderate towards the end of the year since the housing starts in October have reached their lowest since January. For the rest of this year and the coming year, a continued gradual moderation in the pace of new home construction is expected till sustainable levels are achieved.”
To know more about the current mortgages being offered, visit the Syndicate Mortgages website.
About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2008 in Ontario, the company specializes in residential, commercial and construction financing across Canada. With years of experience and expertise in the mortgage industry, and access to an array of lending institutions across Canada, Syndicate is known for finding the best mortgage rates for their customers. Syndicate has branch locations across Canada. For contact, please use the following details.
Syndicate Mortgages Inc.
Toll Free: (888) 646-1062