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.