The Canada Mortgage and Housing Corporation (CMHC) released housing starts data on Friday. Housing starts in Canada increased to a seasonally adjusted annualized rate of 189,708 units in March from a revised reading of 151,238 units in February. February's figure revised down from 156,276 units.

Analysts had expected an increase to 175,000 units.

The CMHC's Chief Economist Bob Dugan said that "the trend in housing starts essentially held steady in March compared to February".

"However, the trend in housing construction has moved lower since September 2014, partly reflecting efforts to manage the level of completed but unsold units," Dugan noted.