If you’re looking for an explanation for the sudden pessimism about Canada’s economic growth prospects, you need look no further than the housing market.

Monday’s data pegged housing starts at a seasonally adjusted annualized rate of 196,000 units in November – down 3.6 per cent from October and 14 per cent in the past three months alone. National Bank Financial says the rapid pace of the slowdown so far in the fourth quarter equates to a 34-per-cent annualized contraction.