Real Estate News: New Home Construction Continues to Increase
Real Estate News: The Canadian Mortgage and Housing Corporation (CMHC) says the pace of new home construction in Canada picked up last month. The main source of momentum was right here in Ontario.
According to CMHC February’s seasonally adjusted rate for housing starts was 210,207 units, up from 208,934 in January and above expectations of 200,000 units.
While this is good news overall, London still seems to be struggling with lower levels of inventory in the new home construction sector.
Activity in the multi-unit sector fell but there was a big jump in single, detached homes in urban areas, CMHC said. This lack of supply is a major factor in increasing home prices across London. New home construction is still the first choice of many people entering the housing market
There were 71,871 single detached houses started in February in urban areas _ up 12.1 per cent from the prior month _ mostly because of Ontario, where there has been a shortage in the Toronto area. The lack of supply, particularly for detached homes, has been a major factor driving up prices in the city and other parts of southern Ontario.
Statistics Canada also reported Wednesday that the value of building permits issued by Canadian municipalities in January rose by 5.4 per cent from the previous month to hit $7.6 billion, including $5.1 billion in the residential sector.
CMHC said multiple-unit projects such as condos and apartments in urban areas declined by 4.7 per cent nationally to 121,164 units in February. Rural starts across Canada were estimated at a seasonally adjusted annual rate of 17,172 units.
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