Housing Starts Still Healthy In Canada

Posted by Alan Zunec on Friday, October 14th, 2011 at 8:53am.

So far things are still looking good for Canada’s housing market. Stats show that housing starts this September are 7.3 percent higher than they were during the same month in 2010, and that’s nationwide. .If you look at some of the provinces on their own, some of the increases are rather astounding.

Starts in the Atlantic Provinces showed the biggest leap, 47 percent when comparing this September to last. Quebec on its own showed a 32 percent increase, while on the other side of the country, British Columbia showed an 18.6 percent increase. Some places did see decreases, among them the urban portions of Ontario with a 2.5 percent decrease, and in the Prairie Region, which saw a 12.1 percent decrease. These figures, and related ones, helped to temper the national average somewhat.

In urban centers the average increase was eight percent. Much of Quebec’s increase occurred in Montreal, driven by a large number of condo projects underway. But these were not welcome numbers to all. Capital Economics warned that all of this is a sign that Canada is overbuilding, and that this type of growth is not sustainable. But then one of the BMO Financial Group’s economists, Robert Kavic, had a more positive outlook, seeing the housing market looking forward to a balanced period thanks to a solid job market and low mortgage rates.

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