Ontario preliminary Seasonally Adjusted Annual Rate (SAAR) of home starts across urban centres grew for a third consecutive month in February. An estimated 62,600 residential housing units broke ground, up from 48,400 units in January.
While multi-family home construction, which includes semi-detached, townhome and apartment units, was the largest contributor to the February strength, single detached construction also edged higher and has posted better than expected activity to date in 2011. For the year ending February, Ontario total new home construction in urban areas is running three per cent below levels for the same period one year ago.
“Ontario new home starts activity has exhibited a seesaw pattern in recent months suggesting the downtrend in activity since the spring of 2010 is leveling out,” said Ted Tsiakopoulos, CMHC’s Regional Economist. “Buoyant resale and new home market conditions since the final months of 2010, an improving economy coupled with the fear of rising rates later this year implies housing starts should move convincingly higher by the second half of 2011,” added Tsiakopoulos.
For more information visit the CMHC’s website.