Canadian Housing Starts Ease in October but Beat Expectations

October starts were down 0.5% for the month but more than 6% greater than forecast

Canadian housing starts slipped 0.5% in October, yet came in higher than expected, as low interest rates and condominium building helped offset the impact of negative global economic news.

Canada Mortgage and Housing Corp (CMHC) said on Tuesday that starts slipped to a seasonally adjusted annualized rate of 207,600 units in October from an upwardly revised 208,800 units in September.

The median forecast in a Reuters poll was for 195,000 starts in October.

"Broadly speaking, the Canadian economy remains ... favorably situated relative to its global peers as headwinds on the international front have intensified," Mazen Issa, Canada macro strategist at TD Securities, said in a note to clients.

(More on Canada's October housing starts . . . )