Canadian Housing Market Tumbles

This by reporter Tavia Grant of the Globe and Mail:

Housing starts dropped a steeper-than-expected 17.1 per cent to its lowest level in more than two years, suggesting Canada's red-hot housing market may be cooling.

The seasonally adjusted annual rate fell to 201,000 units in August, led by a decline in multiple-unit construction, from 242,600 units in July, the Canada Mortgage and Housing Corp. said Friday. It was the lowest level since May, 2003.

While housing starts tend to be volatile, the report comes on the back of another weaker-than-expected housing report this week. Statistics Canada said Wednesday that building permits fell for the third time in four months in July, countering expectations of a gain.

— The Boy in the Big Housing Bubble