Canada Housing Starts

Info

History

Chart

Impact:

Medium

Source: Canada Mortgage And Housing Corporation

Next Release:

Date:

Forecast: 230K

Period: Jun

What Does It Measure?

The Canada Housing Starts indicator measures the number of new residential construction projects that have begun during a specified period, reflecting the health of the housing market. It primarily focuses on residential building activity, assessing key areas such as investment in construction, employment levels in related sectors, and overall economic conditions in the housing market.

Frequency

Housing Starts data is released monthly, typically during the first week of each month, providing updates for the previous month’s activity.

Why Do Traders Care?

Traders pay close attention to Housing Starts as it serves as an indicator of economic strength and consumer confidence, influencing real estate investments, construction stocks, and the broader economy. Higher-than-expected housing starts may signal growth prospects, positively affecting currencies like the CAD and boosting stock prices in related sectors, while weaker results could lead to bearish sentiment.

What Is It Derived From?

The Housing Starts figure is derived from a survey conducted by the Canada Mortgage and Housing Corporation (CMHC), which collects data from construction companies and municipalities about the initiation of new residential projects. This indicator utilizes a comprehensive methodology to ensure accuracy, including a review of building permits and ongoing construction trends.

Description

The Housing Starts report provides vital insights into the construction sector’s performance, contributing to the understanding of economic momentum and housing demand. Preliminary reports are based on early estimates but may be subject to revision, while finalized data offers a more accurate depiction of housing market trends, with the preliminary figures often influencing immediate market reactions due to their timeliness.

Additional Notes

Housing Starts is typically considered a leading economic indicator, as it forecasts future construction activity and can signal trends in the broader economic environment. An increase in housing starts may suggest upcoming growth in associated industries, such as manufacturing and labor, while declines could indicate impending economic slowdowns.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for CAD, Bullish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise