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Housing Watch (Jul.)

The further decline in home sales in June and the record monthly fall in house prices did little to affect construction activity, with housing starts once again outperforming expectations last month. As there are signs that pre-construction sales are tumbling, however, new construction is likely to weaken over the second half of the year. This is first edition of our new Canada Housing Watch, designed to help clients stay on top of developments in the housing market and residential construction sector, and assess what it all means for the broader economic outlook and monetary policy.

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