Thursday, May 28th11.1°C
26412
25546

Pace of housing starts picks up in February, but trend remains stable: CMHC

OTTAWA - Canada Mortgage and Housing Corp. says the pace of housing starts picked up last month, ending a string of modest declines that began in November, but it appears the longer-term trend remains flat.

The agency estimates there were 11,097 actual starts in February, which extrapolated out over 12 months gives a seasonally adjusted annual rate of 192,094 starts, up from 180,481 in January.

The seasonally adjusted annual rate had a recent peak of 198,282 units in October and declined slightly each month through to January.

However, CMHC deputy chief economist Mathieu Laberge said housing construction levels have been relatively stable since August, with month-to-month variations of two per cent or less.

"This is in line with CMHC's outlook calling for a stable housing market in 2014," Laberge said Monday.

In an outlook issued Feb. 6, CMHC predicted there would be about 187,300 housing starts in 2014, ranging between 176,600 and 199,800 units.

That's relatively unchanged from 187,923 units in 2013.

For 2015, CMHC's Feb. 6 forecast estimates about 184,900 units, with a range from 163,200 to 206,600 units.

The state of the housing industry is watched carefully as an indicator of the economy's general health, since construction provides many jobs, mortgage lending is a major business for banks and many Canadian families consider their home to be their biggest investment and asset.

February was the most active month for Canadian housing starts since November, when the seasonally adjusted rate was 192,235 units, and followed especially bad winter weather in December and January.

BMO Capital Markets economist Benjamin Reitzes said there will likely still be "a gentle easing in starts through the course of 2014, consistent with a cooling housing market."

CMHC said the seasonally adjusted annual rate of urban starts was up 7.5 per cent to 175,584 in February.

Multiple-dwelling urban starts — condos, apartments and the like — rose 13.3 per cent to 116,458 in February, while single-detached urban starts slipped 2.4 per cent to 59,126.

The report says the seasonally adjusted annual rate of urban starts increased in Atlantic Canada and Quebec.

The rate was stable in Ontario and decreased in the Prairies and British Columbia.

Reitzes said Quebec had the strongest gain of all the provinces in February, rising 56.2 per cent to the highest level in nearly two years.

"Despite the big gain for Quebec, starts over the past year remain near decade-low levels," Reitzes added in a brief commentary on the CMHC report.

The Canadian Press


Read more Business News

26407


Recent Trending




Today's Market
S&P TSX15110.47+59.66
S&P CDNX690.62-1.34
DJIA18162.99+121.45
Nasdaq5106.59+73.84
S&P 5002123.48+19.28
CDN Dollar0.8007-0.0023
Gold1187.40-16.90
Oil58.53+0.30
Lumber274.00-0.40
Natural Gas2.81-0.01

 
Okanagan Companies
Pacific Safety0.13-0.01
Knighthawk0.010.00
QHR Technologies Inc1.50-0.01
Cantex0.03-0.01
Anavex Life Sciences0.42-0.01
Metalex Ventures0.08-0.01
Russel Metals25.51+0.30
Copper Mountain Mining1.28+0.00
Colorado Resources0.11+0.01
ReliaBrand Inc0.0139+0.0059
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.155+0.005
Decisive Dividend Corporation2.10+0.16

 



26471

FEATURED Property
2306452#209 3533 Carrington Road
1 bedrooms 1 baths
$149,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Cash stressed seniors

Photo: Thinkstock.comFor many Canadian homeowners, their house represents the biggest portion of their net worth. Now, increasing numbers of seniors are starting to recognize the hidden value of their...


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...

_



25482

26363


Member of BC Press Council


25334