The number of Canadian housing starts fell one per cent in April to 211,900 units, down from 214,000 units in March, according to the Canada Mortgage and Housing Corporation.

'The underlying trend in housing starts is starting to grind lower, albeit from historically high levels.'—Sal Guatieri, BMO analyst

The dip may be part of a downward trend in the housing market which is showing signs of cooling, said BMO analyst Sal Guatieri Tuesday.

"The decline was led by the bellwether single-dwelling starts which dipped 1.2 per cent in the month, while the more volatile multiple-unit segment rose 2.3 per cent," Guatieri said in a release. 

"Though difficult to discern from the wild swings of late, the underlying trend in housing starts is starting to grind lower, albeit from historically high levels."

The CMHC recorded a drop in single-detached and rural area starts in April while interest in multiple units, which include condominiums and apartments, is on the rise.

In Canada's urban centres, April's seasonally adjusted annual rate of starts climbed to 179,000 units. Increases in urban multiple units in Ontario and the Atlantic province powered an overall increase of 2.3 per cent to 94,700 units in April, while the rest of the country recorded decreases.

Ontario and the Prairie provinces were the only regions to record an uptick in urban single starts. Meanwhile, the CMHC said rural starts at a seasonally adjusted annual rate reached 32,900 units in April.