Housing starts missed in August, falling to 246K versus estimates for 278K - down 16% versus July, the first decline in five months.

On a Y/Y basis gains were pretty broad-based, with starts in BC doing the heavy lifting and more than offsetting some slight weakness in Ontario and Alberta.

Unit absorption picked up for a second straight month, indicating the continued slowdown in construction might be helping the housing market find its footing…

… which is further supported by the first inventory draw in six months and a flattening out of the time unabsorbed units sit on the market.

With Build Canada Homes looking to add supply to the tune of 500K per year, that dynamic may be tough to hold.