The British Columbia Real Estate Association (BCREA) reports that April was the third consecutive month of increasing home sales in the province, on a seasonally adjusted basis. Consumer demand was bolstered by lower home prices and record low mortgage interest rates. Housing affordability hit a three-year high at the beginning of the month.
“Downward pressure on home prices has eased considerably,” said Cameron Muir, BCREA Chief Economist. “An increase in consumer demand combined with fewer homes for sale has trended the market near balanced conditions.” The number of homes for sale through the Multiple Listing Service (MLS®) fell to a twelve-month low in April, on a seasonally adjusted basis.
MLS® residential sales dollar volume in BC declined 25 per cent to $3.1 billion in April, compared to the same month last year. Residential unit sales declined 20 per cent to 6,918 units during the same period. The average MLS® residential price in the province was $449,372 in April, down 6 per cent from April 2008. Year-to-date, MLS® residential sales dollar volume was down 41 per cent to $7.8 billion over the same period last year. A total of 18,089 units were sold in the first four months, down 35 per cent from 2008, while the average MLS® price declined 9 per cent to $433,246.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
Monday, May 25, 2009
Affordability Drives Home Sales Higher
British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 35 per cent to $2.3 billion in March, compared to the same month last year. Residential unit sales declined 25 per cent to 5,464 units during the same period. The average MLS® residential price in the province was $424,122 in March, down 12 per cent from March 2008.
“While fewer MLS® residential sales were recorded last month compared to March 2008, home sales actually climbed 24 per cent from February to March on a seasonally adjusted basis, the second consecutive month of gains,” said Cameron Muir, BCREA Chief Economist.
A significant increase in affordability helped fuel housing demand last month. “Reduced mortgage interest rates have effectively doubled the impact of lower home prices on affordability,” added Muir. While the average sales price in BC declined 12 per cent from a year ago, the monthly payment on the average priced home was 24 per cent lower. “Housing is now more affordable than at any time in the last three years,” noted Muir.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
“While fewer MLS® residential sales were recorded last month compared to March 2008, home sales actually climbed 24 per cent from February to March on a seasonally adjusted basis, the second consecutive month of gains,” said Cameron Muir, BCREA Chief Economist.
A significant increase in affordability helped fuel housing demand last month. “Reduced mortgage interest rates have effectively doubled the impact of lower home prices on affordability,” added Muir. While the average sales price in BC declined 12 per cent from a year ago, the monthly payment on the average priced home was 24 per cent lower. “Housing is now more affordable than at any time in the last three years,” noted Muir.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
MLS Home Sales Forcast Revised
A Spring housing market that was more active than anticipated has prompted a change to the MLS® home sales forecast issued by The Canadian Real Estate Association for the rest of 2009, and for 2010.
National home sales activity is forecast to be down 14.7 per cent to 370,500 units in 2009. This is slightly less than the reduction in activity predicted in CREA’s forecast issued last February.
The forecast decline in annual activity was trimmed to reflect a stronger than expected rebound in activity in British Columbia and Ontario in the first quarter of 2009. Forecast declines in annual activity were reduced for these provinces. They were also shaved for Manitoba, Quebec, New Brunswick, and Prince Edward Island to reflect stabilizing trends in sales activity in these provinces.
National MLS® home sales activity is forecast to rebound by 7.2 per cent to 397,000 units in 2010. This is a slightly weaker rebound than predicted in CREA’s previous forecast. The revision reflects recently downgraded forecasts for economic growth next year. The rebound in activity in 2010 is forecast to be biggest in British Columbia and Alberta.
New listings on MLS® systems in British Columbia, Alberta and Ontario are forecast to continue easing following the peak reached last year. New listings are also expected to shrink in Saskatchewan, Quebec, New Brunswick, and Nova Scotia. Fewer new listings will further stabilize the resale housing market as sales activity draws down inventories.
The national MLS® average home price is forecast to decrease 5.2 per cent in 2009, led by average price declines in British Columbia and Alberta. By contrast, the average home price is forecast to rise in Manitoba (4.3 per cent), Price Edward Island (4.2 per cent) and Newfoundland & Labrador (10.9 per cent). CREA’s previous forecast predicted a decline in the national average price of eight per cent in 2009.
The price trend is similar but less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average price is forecast to decline 3.6 per cent in 2009, and hold steady in 2010. CREA’s previous forecast predicted the weighted national average price for MLS® homes sales would decline by 6.4 per cent.
“Monthly resale housing activity improved as the first quarter progressed, entering the second quarter on a rising trend and closing in on levels last seen before it fell sharply late last year,” said CREA Chief Economist Gregory Klump. “It will take time for housing inventories to be drawn down enough to put new home construction on a stronger footing, but the balance between resale housing supply and demand is improving in a number of major markets. The national average price has begun to rebound from the recent low reached in January, and is forecast to begin rising modestly above year-ago levels in the fourth quarter of 2009.”
“Copyright Canadian Real Estate Association. Reprinted with permission.”
National home sales activity is forecast to be down 14.7 per cent to 370,500 units in 2009. This is slightly less than the reduction in activity predicted in CREA’s forecast issued last February.
The forecast decline in annual activity was trimmed to reflect a stronger than expected rebound in activity in British Columbia and Ontario in the first quarter of 2009. Forecast declines in annual activity were reduced for these provinces. They were also shaved for Manitoba, Quebec, New Brunswick, and Prince Edward Island to reflect stabilizing trends in sales activity in these provinces.
National MLS® home sales activity is forecast to rebound by 7.2 per cent to 397,000 units in 2010. This is a slightly weaker rebound than predicted in CREA’s previous forecast. The revision reflects recently downgraded forecasts for economic growth next year. The rebound in activity in 2010 is forecast to be biggest in British Columbia and Alberta.
New listings on MLS® systems in British Columbia, Alberta and Ontario are forecast to continue easing following the peak reached last year. New listings are also expected to shrink in Saskatchewan, Quebec, New Brunswick, and Nova Scotia. Fewer new listings will further stabilize the resale housing market as sales activity draws down inventories.
The national MLS® average home price is forecast to decrease 5.2 per cent in 2009, led by average price declines in British Columbia and Alberta. By contrast, the average home price is forecast to rise in Manitoba (4.3 per cent), Price Edward Island (4.2 per cent) and Newfoundland & Labrador (10.9 per cent). CREA’s previous forecast predicted a decline in the national average price of eight per cent in 2009.
The price trend is similar but less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average price is forecast to decline 3.6 per cent in 2009, and hold steady in 2010. CREA’s previous forecast predicted the weighted national average price for MLS® homes sales would decline by 6.4 per cent.
“Monthly resale housing activity improved as the first quarter progressed, entering the second quarter on a rising trend and closing in on levels last seen before it fell sharply late last year,” said CREA Chief Economist Gregory Klump. “It will take time for housing inventories to be drawn down enough to put new home construction on a stronger footing, but the balance between resale housing supply and demand is improving in a number of major markets. The national average price has begun to rebound from the recent low reached in January, and is forecast to begin rising modestly above year-ago levels in the fourth quarter of 2009.”
“Copyright Canadian Real Estate Association. Reprinted with permission.”
Resale Housing Market Continues to Recover in April
MLS® home sales activity increased for the third time in as many months in April 2009, according to statistics released by The Canadian Real Estate Association (CREA). The national average price also rose in April, to within short reach of the record levels reached one year ago.
Seasonally adjusted national home sales activity climbed 11.2 per cent in April 2009 compared to the previous month. This is the largest month-to-month increase in activity in more than five years. MLS® home sales activity reached its highest level in seven months, with 34,838 units trading hands nationally via the MLS® in April on a seasonally adjusted basis.
The increase in April builds on gains of 10.3 per cent in February and 7.7 per cent in March. Seasonally adjusted activity now stands 32 per cent above the lowest level in a decade that was recorded in January 2009.
Seasonally adjusted sales were up from March levels in 70 per cent of local markets, with gains in Toronto (10 per cent), Vancouver (30 per cent), Montreal (15 per cent), and Calgary (31 per cent) contributing most to the overall increase in monthly activity.
Actual (not seasonally adjusted) MLS® home sales totaled 43,473 units in April 2009, down 11.8 per cent from the same month one year ago. Year-over-year declines have been shrinking since dropping a record 42.2 per cent in November 2008.
“REALTORS® know that several factors have led to this market situation,” says Regina Broker Dale Ripplinger, President of The Canadian Real Estate Association. “First, price adjustments in some markets have helped affordability. Second, lenders do have money for people and properties that qualify, although some are being more stringent. The third factor involves consumer confidence, which has risen in the housing market through the Spring.”
The last factor, CREA’s President adds, is that sellers have realized that realistic pricing is key, and that is very much driven by local factors. “Homes are only worth what a buyer is willing to pay.”
The national MLS® residential average sale price in April ($306,366) stands 3.2 per cent below April 2008, when it reached its pre-recession peak. The MLS® residential average price broke all previous monthly records in Saskatchewan, Manitoba, Quebec, and Nova Scotia.
The supply of homes coming onto the MLS® market continued trending downward in April. Seasonally adjusted MLS® residential new listings edged lower by 1.8 per cent from the previous month to 66,843 units, the lowest level since June 2006. Seasonally adjusted new residential listings in April were 16.4 per cent below the peak reached in May 2008.
With sales activity rising strongly and new listings trending downward, the balance between supply and demand is firming up in British Columbia, Alberta, Ontario, and Quebec. As a result, in April 2009 national sales as a percentage of new listings reached the highest point since February 2008.
The residential dollar volume for MLS® sales climbed 12.3 per cent from the previous month to reach $10.2 billion. This is the biggest increase since December 2001, and first time since September 2008 that dollar volume surpassed $10 billion.
“If the trend for MLS® sales activity over the past few months persists, the number of transactions in May could surpass the pre-recession levels of September 2008,” said CREA Chief Economist Gregory Klump. “In the recessions of the early 1980s and 1990s, sales activity bottomed out before the job market or even the economy did. Improved affordability may result in Canadian existing home sales leading the economic recovery this year.”
“Copyright Canadian Real Estate Association. Reprinted with permission.”
Seasonally adjusted national home sales activity climbed 11.2 per cent in April 2009 compared to the previous month. This is the largest month-to-month increase in activity in more than five years. MLS® home sales activity reached its highest level in seven months, with 34,838 units trading hands nationally via the MLS® in April on a seasonally adjusted basis.
The increase in April builds on gains of 10.3 per cent in February and 7.7 per cent in March. Seasonally adjusted activity now stands 32 per cent above the lowest level in a decade that was recorded in January 2009.
Seasonally adjusted sales were up from March levels in 70 per cent of local markets, with gains in Toronto (10 per cent), Vancouver (30 per cent), Montreal (15 per cent), and Calgary (31 per cent) contributing most to the overall increase in monthly activity.
Actual (not seasonally adjusted) MLS® home sales totaled 43,473 units in April 2009, down 11.8 per cent from the same month one year ago. Year-over-year declines have been shrinking since dropping a record 42.2 per cent in November 2008.
“REALTORS® know that several factors have led to this market situation,” says Regina Broker Dale Ripplinger, President of The Canadian Real Estate Association. “First, price adjustments in some markets have helped affordability. Second, lenders do have money for people and properties that qualify, although some are being more stringent. The third factor involves consumer confidence, which has risen in the housing market through the Spring.”
The last factor, CREA’s President adds, is that sellers have realized that realistic pricing is key, and that is very much driven by local factors. “Homes are only worth what a buyer is willing to pay.”
The national MLS® residential average sale price in April ($306,366) stands 3.2 per cent below April 2008, when it reached its pre-recession peak. The MLS® residential average price broke all previous monthly records in Saskatchewan, Manitoba, Quebec, and Nova Scotia.
The supply of homes coming onto the MLS® market continued trending downward in April. Seasonally adjusted MLS® residential new listings edged lower by 1.8 per cent from the previous month to 66,843 units, the lowest level since June 2006. Seasonally adjusted new residential listings in April were 16.4 per cent below the peak reached in May 2008.
With sales activity rising strongly and new listings trending downward, the balance between supply and demand is firming up in British Columbia, Alberta, Ontario, and Quebec. As a result, in April 2009 national sales as a percentage of new listings reached the highest point since February 2008.
The residential dollar volume for MLS® sales climbed 12.3 per cent from the previous month to reach $10.2 billion. This is the biggest increase since December 2001, and first time since September 2008 that dollar volume surpassed $10 billion.
“If the trend for MLS® sales activity over the past few months persists, the number of transactions in May could surpass the pre-recession levels of September 2008,” said CREA Chief Economist Gregory Klump. “In the recessions of the early 1980s and 1990s, sales activity bottomed out before the job market or even the economy did. Improved affordability may result in Canadian existing home sales leading the economic recovery this year.”
“Copyright Canadian Real Estate Association. Reprinted with permission.”
Housing Activity Will Moderate in 2009, Improve in 2010
Housing starts are expected to decline to 141,900 for 2009, but increase to 150,300 for 2010, according to Canada Mortgage and Housing Corporation’s (CMHC) second quarter Housing Market Outlook, Canada Edition* report.
“The decline in housing starts in 2009 can be attributed to several factors, including the current economic climate, increased competition from the existing home market, and the impact of strong house price growth between 2002 and 2007” said Bob Dugan, Chief Economist for CMHC. “However, housing market activity will begin to strengthen in 2010 as the Canadian economy recovers, bringing housing starts more in line with demographic fundamentals over the forecast period”.
Existing home sales, as measured by the Multiple Listing Service (MLS®)1, are expected to decline to 357,800 units in 2009 from 433,990 in 2008, but increase to 386,100 units in 2010. The average MLS® price is also expected to decrease to $283,100 in 2009 and to stabilize in 2010.
CMHC, Ottawa
“The decline in housing starts in 2009 can be attributed to several factors, including the current economic climate, increased competition from the existing home market, and the impact of strong house price growth between 2002 and 2007” said Bob Dugan, Chief Economist for CMHC. “However, housing market activity will begin to strengthen in 2010 as the Canadian economy recovers, bringing housing starts more in line with demographic fundamentals over the forecast period”.
Existing home sales, as measured by the Multiple Listing Service (MLS®)1, are expected to decline to 357,800 units in 2009 from 433,990 in 2008, but increase to 386,100 units in 2010. The average MLS® price is also expected to decrease to $283,100 in 2009 and to stabilize in 2010.
CMHC, Ottawa
Monday, April 13, 2009
MORTGAGE RATES TO NEAR-RECORD LOWS
First-quarter Canadian mortgage rates continued to decline in 2009 to the benefit of consumers. The posted one-year borrowing cost on a fixed term mortgage fell to 5.00 per cent at the end of February, marking a 195 basis points (bps) decline since July 2008. The five-year fixed term mortgage rate fell to 5.79 per cent in February, down 141 bps from October 2008 (Fig.1). BCREA forecasts near-record low mortgage rates in the next four quarters, as weak economic conditions and low inflation contribute to lower interest rates in Canada.
On March 3, the Bank of Canada (BoC) cut its target for its key overnight interest rate by 50 bps to 0.5 per cent as the global economy worsened and domestic demand pulled back. On a cumulative basis, the target overnight rate has been cut by 400 bps since December 2007. Despite the current low level, futures markets are pricing in a further 25 bps cut. The BoC noted in its March 3 communiqué that “the overnight rate can be expected to remain at this level or lower at least until there are clear signs that excess supply in the economy is being taken up.” Given the continued deterioration in global economic conditions, particularly in the US, BCREA expects the BoC to lower the overnight rate to a floor of 0.25 per cent on April 21.
A decline in short-term interest rates and minimal risk of inflation in the near future should set the stage for further downward pressure on mortgage rates. Variable mortgage rates, which generally move in lock-step with the prime and hence the overnight rate, should reach a bottom after the BoC’s next interest rate announcement on April 21, notwithstanding rate discounts or premiums offered by financial institutions.
Fixed term mortgage rates, which are closely related to bond yields and deposit rates of similar maturity, should decline as the inflationary risks associated with higher potential interest rates in the future subside with the weakened economy. Meanwhile, tight credit market conditions are expected to improve, albeit slowly, lowering the cost of mortgage market funds raised in capital markets. The potential for an improvement in economic conditions in 2010 will lead to modest growth in interest and mortgage rates during the second half of 2010.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
On March 3, the Bank of Canada (BoC) cut its target for its key overnight interest rate by 50 bps to 0.5 per cent as the global economy worsened and domestic demand pulled back. On a cumulative basis, the target overnight rate has been cut by 400 bps since December 2007. Despite the current low level, futures markets are pricing in a further 25 bps cut. The BoC noted in its March 3 communiqué that “the overnight rate can be expected to remain at this level or lower at least until there are clear signs that excess supply in the economy is being taken up.” Given the continued deterioration in global economic conditions, particularly in the US, BCREA expects the BoC to lower the overnight rate to a floor of 0.25 per cent on April 21.
A decline in short-term interest rates and minimal risk of inflation in the near future should set the stage for further downward pressure on mortgage rates. Variable mortgage rates, which generally move in lock-step with the prime and hence the overnight rate, should reach a bottom after the BoC’s next interest rate announcement on April 21, notwithstanding rate discounts or premiums offered by financial institutions.
Fixed term mortgage rates, which are closely related to bond yields and deposit rates of similar maturity, should decline as the inflationary risks associated with higher potential interest rates in the future subside with the weakened economy. Meanwhile, tight credit market conditions are expected to improve, albeit slowly, lowering the cost of mortgage market funds raised in capital markets. The potential for an improvement in economic conditions in 2010 will lead to modest growth in interest and mortgage rates during the second half of 2010.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
Global Economy Retrenches
The global economic outlook has deteriorated rapidly during the last two quarters. The ongoing financial crisis has bled into the real economy as declines in asset values have cut into household wealth, yielding lower consumer demand. Consumers and businesses have also cut back or postponed expenditures and production amid the economic uncertainty, lowering consumption
and capital expenditures.
These worsening conditions led the International Monetary Fund to lower its global growth forecast in late January to 0.5 per cent for 2009, with a 3 per cent rebound in 2010. In a more recent release, The World Bank forecasted a contraction in the global economy for 2009. Both 2009 forecasts underscore the severity of the current situation, which would mark the worst
global performance since World War II.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
and capital expenditures.
These worsening conditions led the International Monetary Fund to lower its global growth forecast in late January to 0.5 per cent for 2009, with a 3 per cent rebound in 2010. In a more recent release, The World Bank forecasted a contraction in the global economy for 2009. Both 2009 forecasts underscore the severity of the current situation, which would mark the worst
global performance since World War II.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
Canada Caught in the Undertow
As a small open economy, Canada is not immune to the global recession. The deep contraction in US economic activity has been particularly challenging for Canada, given the countries’ trade ties. US auto sales dropped to an annualized rate of 9.1 million units in February, marking a 40 per cent year-over-year decline and the lowest activity on record. This contributed to declines of 30 per cent in the vehicle manufacturing components of Canada’s GDP in Q4 2008. Meanwhile, the US housing market has yet to turn the corner. New home starts have tumbled to historical lows while home prices continue to trend lower, suggesting further challenges for Canada’s wood products sector. A global pull-back in economic activity has also lowered the demand and price of a number of other Canadian export commodities, including those in the metals, minerals and energy sectors.
While the retrenchment in export activity has dominated headlines, domestic demand has also weakened. Personal spending fell for the first time since 1995 in Q4 2008, reflecting lower consumer confidence and less robust labour market conditions. Investment has also slowed in plant and equipment, and residential structures. The latter reflects less new home construction, renovations, and real estate transfers.
As a result, Canada’s GDP contracted at an annualized rate of 3.4 per cent in Q4 2008, the weakest quarterly performance since 1991 (Fig.2). That said, this decline paled in comparison to those recorded in regions such as the US, Euro Area and Japan.
A weaker Canadian dollar has and will result in higher import prices. Even so, a contracting economy with excess capacity will continue to exert downward pressure on inflation (Fig.3). This will provide the Bank of Canada room to further cut its policy interest rate to spur economic activity. Expectations of lower inflation and future interest rates will push interest rates lower on longer-term products, such as mortgages.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
While the retrenchment in export activity has dominated headlines, domestic demand has also weakened. Personal spending fell for the first time since 1995 in Q4 2008, reflecting lower consumer confidence and less robust labour market conditions. Investment has also slowed in plant and equipment, and residential structures. The latter reflects less new home construction, renovations, and real estate transfers.
As a result, Canada’s GDP contracted at an annualized rate of 3.4 per cent in Q4 2008, the weakest quarterly performance since 1991 (Fig.2). That said, this decline paled in comparison to those recorded in regions such as the US, Euro Area and Japan.
A weaker Canadian dollar has and will result in higher import prices. Even so, a contracting economy with excess capacity will continue to exert downward pressure on inflation (Fig.3). This will provide the Bank of Canada room to further cut its policy interest rate to spur economic activity. Expectations of lower inflation and future interest rates will push interest rates lower on longer-term products, such as mortgages.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
New Survey on Affordability and Green Housing Reveals BC Trends
Vancouver, BC – April 7, 2009. A survey of homeowners and renters across British Columbia suggests that, when it comes to housing, affordability concerns and making smart green choices are top of mind for most BC residents.
Sponsored by the British Columbia Real Estate Association (BCREA), the January 2009 Mustel Group survey examines the top affordability barriers in the province and how provincial taxes and homeowner assistance programs impact BC buyers.
A total of 38 per cent of British Columbians plan or hope to purchase a property within the next five years, with about half of these potential buyers expecting to do so in the next two years.
“Following the May 12 election, quick actions by the newly elected provincial government on key issues of interest to the real estate sector may assist these buyers in their home buying decisions, while also potentially empowering those who are currently unable to purchase a home,” says BCREA President Scott Veitch.
Survey findings indicate that availability of affordable properties is the key barrier in a home purchasing decision. Other major financial barriers include employment security, ability to qualify for a mortgage and the provincial Property Transfer Tax.
“We’ve never reached out to the public quite like this before,” notes Veitch. “This survey helped create a clearer picture of the key issues facing homeowners, renters, buyers and sellers in this province. When the new government is formed, the information in this survey will help uask for changes that make home ownership
The survey findings also provide information on the green choices BC residents are making at home and the data suggests that about three out of every four British Columbians have already taken steps to make their homes more environmentally friendly.
Water conservation, home energy assessments and general awareness of federal and provincial green programs are also addressed by the findings.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
Sponsored by the British Columbia Real Estate Association (BCREA), the January 2009 Mustel Group survey examines the top affordability barriers in the province and how provincial taxes and homeowner assistance programs impact BC buyers.
A total of 38 per cent of British Columbians plan or hope to purchase a property within the next five years, with about half of these potential buyers expecting to do so in the next two years.
“Following the May 12 election, quick actions by the newly elected provincial government on key issues of interest to the real estate sector may assist these buyers in their home buying decisions, while also potentially empowering those who are currently unable to purchase a home,” says BCREA President Scott Veitch.
Survey findings indicate that availability of affordable properties is the key barrier in a home purchasing decision. Other major financial barriers include employment security, ability to qualify for a mortgage and the provincial Property Transfer Tax.
“We’ve never reached out to the public quite like this before,” notes Veitch. “This survey helped create a clearer picture of the key issues facing homeowners, renters, buyers and sellers in this province. When the new government is formed, the information in this survey will help uask for changes that make home ownership
The survey findings also provide information on the green choices BC residents are making at home and the data suggests that about three out of every four British Columbians have already taken steps to make their homes more environmentally friendly.
Water conservation, home energy assessments and general awareness of federal and provincial green programs are also addressed by the findings.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
Housing Starts Move up in March
The seasonally adjusted annual rate1 of housing starts increased to 154,700 units in March from 136,100 units in February, according to Canada Mortgage and Housing Corporation (CMHC).
“Higher multiple starts in Ontario and Quebec were the main contributors to the rise in new construction activity in March,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “While the multiples segment experienced the largest increase, the overall boost in starts was broad based, encompassing the singles segment as well.”
The seasonally adjusted annual rate of urban starts increased 17 per cent to 127,900 units in March. Urban multiple starts increased 28.3 per cent to 81,500 units, while urban single starts moved up by 1.3 per cent to 46,400 units in March.
March’s seasonally adjusted annual rate of urban starts increased by 35 per cent in Ontario and by 23.3 per cent in Quebec. Urban starts declined by 17.3 per cent in British Columbia, by 7.9 per cent in Atlantic Canada, and by 7.5 per cent in the Prairies.
Rural starts were estimated at a seasonally adjusted annual rate of 26,800 units in March2.
New home construction is now at a more sustainable level after having been exceptionally strong over the past 7 years, exceeding 200,000 units per year.
CMHC OTTAWA, April 8, 2009
“Higher multiple starts in Ontario and Quebec were the main contributors to the rise in new construction activity in March,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “While the multiples segment experienced the largest increase, the overall boost in starts was broad based, encompassing the singles segment as well.”
The seasonally adjusted annual rate of urban starts increased 17 per cent to 127,900 units in March. Urban multiple starts increased 28.3 per cent to 81,500 units, while urban single starts moved up by 1.3 per cent to 46,400 units in March.
March’s seasonally adjusted annual rate of urban starts increased by 35 per cent in Ontario and by 23.3 per cent in Quebec. Urban starts declined by 17.3 per cent in British Columbia, by 7.9 per cent in Atlantic Canada, and by 7.5 per cent in the Prairies.
Rural starts were estimated at a seasonally adjusted annual rate of 26,800 units in March2.
New home construction is now at a more sustainable level after having been exceptionally strong over the past 7 years, exceeding 200,000 units per year.
CMHC OTTAWA, April 8, 2009
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