FXstreet.com (Barcelona) - Starts of new houses have decreased somewhat beyond expectations in Canada in December, according to data released by The Canada House and Mortgage Corporation.

The seasonally adjusted rate of housing starts has declined10.9% to 153,500 units in January from 172,200 units in December.

According to Bob Dugan, Chief Economist at CMHC, there are several factors to take in account on January's decline: To a certain extent, the decline in housing starts coincides with recent developments in the existing home market. Reduced sales and increased listings in the existing home market have led to reduced spillover demand in the new home market,