Canadian homebuilding activity remains stable and in-line with fundamentals

Canadian housing starts fell sharply to 156,300 annualized units in February, well below expectations and down from 187,000 in the prior month (revised down very slightly).

Declines were broad based across much of the country (all provinces but Saskatchewan were down), with the frigid weather likely playing a role. 

Both single and multi-unit starts fell in February, with the former slowing to the weakest level since mid-2009 at 54.5k, while the latter slumped to 86.2k.

BMO Capital Markets notes as follows on Monday:

• Looking through the volatility, the bigger picture is that homebuilding activity on a national basis is consistent with demographic demand 
  
  
• Looking past some harsh February weather, Canadian homebuilding activity remains stable and in-line with fundamentals. 
  
  
• The oil price shock has yet to fully show up in these data, but if recent trends in the resale market are any guide, starts in the oil-producing provinces will be heading lower through 2015.