Summary: Canadian housing starts trended upward in October, rising five per
cent month-over-month to a seasonally adjusted annual rate of 157,300 units –
the highest level this year. Within the GTA, starts increased 13 per cent to a
seasonally adjusted annual rate of 34,200 units. The Canadian and GTA
increases were driven by starts for multiple-family dwellings, which rose 21.3
per cent in the GTA and 13.8 per cent nationally.
Analysis: The upward trend in housing starts makes sense when considered
alongside the general tightening in the Canadian existing home market over the
same period. When existing home sales increase strongly relative to listings,
which has been the case in many Canadian centres including the GTA, a
greater number of buyers looking to broaden their home ownership alternatives
start to spill over into the new home market. As long as tight market conditions
remain in place in the GTA and other Canadian centres, expect the recovery in
new home construction to continue. This will be beneficial to the Canadian
economy through the creation of well-paid construction trades jobs and through
considerable economic spin-offs to other sectors of the economy like
manufacturing and various professional services.
Source: Canada Mortgage and Housing Corporation (CMHC)
Link to Release:
For CMHC’s GTA release:
http://www.cmhc-schl.gc.ca/odpub/press/2009/2009_11_09_0815_EOT.pdf
