CMHC Says Pace of Housing Starts Picked Up in February 2018

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CMHC Says Pace of Housing Starts Picked Up in February 2018

  • date 2018-03-24 |
  • by Homelife Galaxy |

CMHC Says Pace of Housing Starts Picked Up in February

CMHC Says Pace of Housing Starts Picked Up in FebruaryAccording to the Canadian Mortgage and Housing Corporation (CMHC), the speed of new home construction has picked up unexpectedly in February 2018 due to the strength in the condo market in major cities.The federal housing agency stated that the seasonally adjusted annual rate of housing starts jumped to 229,737 units last month from 215,260 units in January 2018.

TD Bank economist Rishi Sondhi stated that housing construction continues to exceed expectations. He mentioned that housing starts are increasing by a relatively firm economic backdrop, population growth and past gains in pre-construction sales in Toronto.

TD Bank economist Rish Sondhi also said that TD Bank anticipates cooling demand will ultimately slow housing starts in the future if there are higher rates and restrictive policy measures in place.According to a different report from Statistics Canada, municipalities issued $8.4 billion in building permits in January 2018. This figure represents a 5.6 per cent increase from December 2017.

Data from Statistics Canada revealed that building permits increased above expectations in January, specifically in the condo market. This indicates continued strength in the mutli-family dwelling category.

The increase in building permits issued is largely influenced by permits for multi-family dwellings in Ontario which increased in January 2018 from December 2017.

Reference: CBC News

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