March 8, 2010

Carrick: Canada’s housing starts in February just under 200,000 units

Housing starts in Canada have made a remarkable recovery, according to Canada Mortgage and Housing Corp. The February starts level was just under 200,000 units, at 196,700 seasonally adjusted and annualized.

National housing starts a year ago in February 2009 were just 115,000 units. Their low point in the recession occurred in April 2009 at only 112,000 units.

Strong existing home sales, record low mortgage rates and house prices that continue to climb in most regions of the country are the factors behind the relatively high level of starts.

From 2002 to 2008, housing starts in Canada averaged 222,000 units annually. In 2009, they were 149,000 units.

The last five months have been a surprisingly quick return to better starts levels.

With only two months to report so far this year, it is a little early to draw too many conclusions. However, the pattern regionally certainly seems to be that the West is recording larger percentage gains year over year than the East.

Also, it is clearly the singles market that is out front in housing starts (+93% year to date 2010 vs. same period 2009), with multiples doing better as well (+39%), but not to the same degree.

A more complete report with charts will follow later today on dailycommercialnews.com

-Alex Carrick, CanaData chief economist

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