Pace of housing slows in July but still beats economists' expectations

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The Canada Mortgage and Housing Corp. says the pace of construction of new homes slowed in July, although the six-month trend continued to be positive.

CMHC's seasonally adjusted annualized rate fell by 9.6% in July to 222,013, compared with 245,455 in June.

However, the decline was smaller than expected and CMHC's six-month trend rose to 208,970 units from 205,765 units in June.

Economists had estimated a seasonally adjusted annualized rate of 203,500, according to financial markets data firm Refinitiv.

CMHC says housing starts in urban areas fell by 10.4% in July to 209,122, led by a 12% decline in multiple-unit dwellings to 162,722 units. 

Single detached urban starts fell 4.6% to 46,400 units..

Housing starts in rural areas were estimated at a seasonally adjusted annual rate of 12,891 units.