Housing starts rose in February largely as a result of increasing multi-family starts in Ontario and the Prairies, according the Canada Mortgage and Housing Corporation.
Housing starts rose in February largely as a result of increasing multi-family starts in Ontario and the Prairies, according the Canada Mortgage and Housing Corporation.
The seasonally adjusted annual rate of housing starts was 181,900 units in February, up from 170,600 units in January 2011. Despite two months of consecutive increases, housing starts are 9.8% below year-ago levels.
“The bulk of this increase was felt in the multiples segment. From last month, multi-family starts were up in Saskatchewan and in Toronto.” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre.
The seasonally adjusted annual rate of urban starts increased by 9.4% to 161,000 units in February. Urban multiple starts were up by 14.5% in February to 94,900 units, while single urban starts edged higher by 3.0% to 66,100 units.
February’s seasonally adjusted annual rate of urban starts decreased by 24.7% in Atlantic Canada, by 7.1% in Quebec, and by 5.9% in British Columbia. Urban starts increased by 29.3% in Ontario and by 26.1% in the Prairies.
Rural starts were estimated at a seasonally adjusted annual rate of 20,900 units in February.
According to Diana Petramala, an economist with TD Economics, since much of the gain was concentrated in multiple units, there is the possibility that housing starts will pull back in the coming months.
"This component tends to be more volatile, so sharp increases tend to be followed by contractions. Second, the inventory of multiple units in Canada is high, and has been rising.
“We believe that to unwind some of the excesses in the new home sector, housing starts should trend within a range of 160,000-170,000 units through 2011."
The seasonally adjusted annual rate of housing starts was 181,900 units in February, up from 170,600 units in January 2011. Despite two months of consecutive increases, housing starts are 9.8% below year-ago levels.
“The bulk of this increase was felt in the multiples segment. From last month, multi-family starts were up in Saskatchewan and in Toronto.” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre.
The seasonally adjusted annual rate of urban starts increased by 9.4% to 161,000 units in February. Urban multiple starts were up by 14.5% in February to 94,900 units, while single urban starts edged higher by 3.0% to 66,100 units.
February’s seasonally adjusted annual rate of urban starts decreased by 24.7% in Atlantic Canada, by 7.1% in Quebec, and by 5.9% in British Columbia. Urban starts increased by 29.3% in Ontario and by 26.1% in the Prairies.
Rural starts were estimated at a seasonally adjusted annual rate of 20,900 units in February.
According to Diana Petramala, an economist with TD Economics, since much of the gain was concentrated in multiple units, there is the possibility that housing starts will pull back in the coming months.
"This component tends to be more volatile, so sharp increases tend to be followed by contractions. Second, the inventory of multiple units in Canada is high, and has been rising.
“We believe that to unwind some of the excesses in the new home sector, housing starts should trend within a range of 160,000-170,000 units through 2011."
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