Province
OTTAWA — Canadian housing starts jumped more than 20 per cent in January, beating expectations and reversing a downward trend in the previous month.
Canada Mortgage and Housing Corp. said Friday that the seasonally adjusted annualized rate was 222,700 units last month, up from 184,700 units in December.
Many analysts had expected 210,000 housing starts in January.
“Historically low mortgage rates, solid employment and income growth as well as a high level of consumer confidence continue to underpin the high level of housing starts,” said CMHC chief economist Bob Dugan.
“Housing starts in January returned to a level more consistent with our expectation that housing starts will total 211,700 units in 2008, remaining above the 200,000 mark for the seventh consecutive year.” The rate of urban starts rose 25.2 per cent to 189,500 units. Multiple-unit dwellings surged 64.1 per cent to 108,000 units, while single units fell 4.8 per cent to 81,500.
Urban starts in January were up 43.7 per cent in Ontario, 22.4 per cent in Quebec, 19.4 per cent in the Prairies and 17.5 per cent in B.C., but the Atlantic region declined 17.4 per cent.
TD Bank economist Pascal Gauthier wrote: “Residential construction should remain one of the bright spots in the domestic economy, helping to limit (but not eliminate) the extent to which the U.S. slowdown acts as a drag to overall economic growth.”
