UPDATE 2-Canada housing starts reverse in April, fall 20 pct

* Starts revert to downward trend set last year

* Urban multiples tumbles 32.7 pct

* Single family home starts fall 8.7 pct (Adds background and analysts' comment)

By Ka Yan Ng

TORONTO, May 8 (Reuters) - Canadian housing starts fell 19.9 percent in April from March, returning to a downward trend that began last year, largely on a sharp drop in construction of condos.

Housing starts dropped to a seasonally adjusted annualized rate of 117,400 units from a revised 146,500 units in March, Canada Mortgage and Housing Corp. said.

The March figure was originally reported at 154,700 units, which broke a six-month losing string of falling starts.

The number of starts for April were well below the average forecast of economists polled by Reuters who had called for 140,000 starts.

"New home construction is now at a more sustainable level after having been exceptionally strong over the past seven years, exceeding 200,000 units per year," the CMHC said.