UPDATE 1-Canada July housing starts slip from June -CMHC

(Adds analyst comment, regional detail)
By Andrea Hopkins
TORONTO, Aug 11 (Reuters) - Canadian housing starts fell
more than expected in July from June but were broadly in line
with demographic fundamentals and analysts said housing remained
a bright spot in Canada's otherwise sluggish economy.
The report from the Canadian Mortgage and Housing Corp
showed the seasonally adjusted annualized rate of housing starts
fell to 193,032 in July from a downwardly revised 202,338 units
in June. Forecasters had expected 195,000 starts.
With the six-month trend at 185,586 starts, analysts said
homebuilding has settled into a pace that meets demographic
demand, seemingly unaffected by the low oil prices and economic
drag felt in many other sectors.
"While there are regional weak spots and strong spots, there
is hardly a hint of recession in the national housing market
figures. Overall Canadian construction activity continues to
look very sturdy," Robert Kavcic, senior economist at BMO
Capital Markets, wrote in a research note.
The CMHC report showed a 5.9 percent drop in urban starts,
which make up the bulk of construction activity, with multiple
starts - typically condos - down 8.2 percent and single-detached
home starts down a more modest 0.8 percent.
Regionally, British Columbia showed the only gain in new
housing starts, while Ontario, Quebec, the Prairies and Atlantic
Canada all showed declines.
Canada's housing market has experienced strong growth since
a brief pause during the 2008-2009 financial crisis, despite
repeated forecasts for a slowdown or crash. While there are
signs of slowing in some markets, particularly the oil industry
heartland of Alberta, key cities like Toronto and Vancouver are
still booming.
"The housing market continues to stand out as a pillar of
strength for the Canadian economy amid a very low interest rate
environment," David Tulk, chief Canada macro strategist at TD
Securities, wrote in a research note.
"With the Bank of Canada expected to remain quite
accommodative, we see further momentum in both sales and
construction through the second half of the year."