CIBC warns overstated housing starts mask economic weakness in Canada

CIBC is warning that cracks forming in the housing market will weigh on the economy as construction flags and homeowners keep a tighter grip on their wallets.

The bank said in a new report on Feb. 18 that the housing market is too soft to encourage builders to break ground on new homes at the pace needed to lift the economy and deliver a long overdue supply injection.

“I think that we are in the early stages of this correction when it comes to the impact on the economy,” said CIBC...