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Canadian housing starts fall in May, new housing prices increase in April

Canadian housing starts fell by 9% to 194,663 units in May from 213,498 in April, based on data released by Canada Mortgage Housing Corp.

The six-month moving average, however, rose to 214,621 in the month from 213,435 in April as declines in Quebec and Ontario were moderated by an upward trend in British Columbia and Alberta.

Single-detached housing starts decreased 7% to 71,624 in May from 76,837 units in April while housing starts in all other categories fell 10% to 123,041 from 136,665 units in the previous month.

Meanwhile, the new housing price index increased 0.8% in April, the largest monthly gain in almost a year, according to data from Statistics Canada.

Toronto registered the largest gain with 2.1% followed by London with 2.0%. House prices declined 0.2% in Edmonton and Halifax. Year over year, house prices advanced 3.9%, the largest annual gain since May 2008. Toronto posted the largest advance with 9.9% followed by St. Catharines–Niagara with 7.2%.