Canadian builders began 2020 with a strong rebound in housing starts that is good news for the nation’s increasingly tight real estate markets. The 213.k number was higher than expected, analysts were calling for 205K new starts. Statistics Canada also reported that building permits rose 7.4 per cent in December, more than double the 2.8 per cent median forecast from economists. The increase is consistent with the housing starts data for January and included a 47 per cent surge in Toronto intentions, the most since 2014. Overall, Canada recorded a 13.6 per cent jump in multiple urban starts during the month, while single-detached starts fell 0.9 per cent.
The Canadian dollar is a bit weaker as commodity driven currencies are being challenged by the coronavirus, oil is now below $50 USD a barrel for West Texas Intermediate. Oil has dropped more than 20% from a peak in January after the spreading virus hit demand in the world’s largest oil importer and fueled concerns of excess supplies.
Expect a narrow range today.