Canadian Housing Starts, August 2010 Results

Date: September 9, 2010

Canadian Housing Starts, August 2010 Results

Source: Canada Mortgage and Housing Corporation (CMHC)

Link to Release: http://www.marketwire.com/press-release/Toronto-Housing-Starts-Rise-in-August-1316077.htm

Summary: Canadian housing starts fell for the fourth consecutive month in August. The seasonally adjusted annual rate for starts dipped three per cent to 183,300 units from 188,900 units in July. Declines in both single detached and multiple-family starts were reported. GTA home builders bucked the national trend, as the annual rate of starts in the Toronto area increased by almost 30 per cent due to a surge in new condominium apartment construction.

Analysis: On the national scale, increased supply in the resale market has resulted in fewer buyers spilling over into pre-construction sales centres. However, in the GTA the new home construction trend has been pointing upward, driven by new unit sales in the high-rise category. Strong high-rise sales over the past year continued to convert into starts in August with multiple-family starts jumping close to 50 per cent compared to July. While high-rise starts have proven to be volatile month-over-month, the condominium apartment segment remains the driving force behind new home onstruction within the City of Toronto and many surrounding municipalities as well.

Source: Toronto Real Estate Board

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