Invest in Canada » construction http://www.invest-in-canada.com The real facts about the Canadian Economy Wed, 19 Aug 2009 17:03:53 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Leap in home building offers hope http://www.invest-in-canada.com/real-estate/leap-in-home-building-offers-hope.htm http://www.invest-in-canada.com/real-estate/leap-in-home-building-offers-hope.htm#comments Thu, 09 Jul 2009 15:54:08 +0000 investor http://www.invest-in-canada.com/?p=344
Home construction.

Construction of new homes has surged by a surprising eight per cent in June, prompting analysts to say the housing market in Canada has turned the corner and begun recovering.

The annual pace of housing starts rose to 140,700 units in June from 130,300 in May, with the increase in activity spread across different types of buildings, said the national housing agency, Canada Mortgage and Housing Corp.

“The increase in housing starts in June is broadly based, encompassing both the singles and multiples segments,” said Bob Dugan, chief economist at CHMC. “In addition, Western Canada experienced an increase this month.”

The leap in activity was much stronger than anticipated. Analysts had been expecting a small increase, after seeing decreases in nine of the previous 12 months.

While home construction is still 30 per cent less active than a year ago, there are many signs that the bottom has been reached and the housing market has moved on to a slow recovery, said Dawn Desjardins, assistant chief economist at Royal Bank of Canada.

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]]> http://www.invest-in-canada.com/real-estate/leap-in-home-building-offers-hope.htm/feed 0 Home construction rebounds http://www.invest-in-canada.com/real-estate/home-construction-rebounds.htm http://www.invest-in-canada.com/real-estate/home-construction-rebounds.htm#comments Wed, 08 Apr 2009 16:46:42 +0000 investor http://www.invest-in-canada.com/?p=277

Construction of new homes picked up a “mind-boggling” 13.7 per cent in March, despite expectations for a continued slide.

Housing starts rose last month to 154,700 units, at a seasonally adjusted annual rate, an increase from the 136,100 pace seen in February, Canada Mortgage and Housing Corp. said Wednesday.

Construction of condominiums in central Canada was mainly responsible for the rebound.

The surge was “mind-boggling” and puts a halt to a six-month slide in home building activity, said Millan Mulraine, economics strategist at TD Securities.

“On the surface, this was a very strong report,” he said. “… However, in the grand scheme of things, the key economic fundamental factors continue to point to further weakness in Canadian housing sector activity.”

Most of the increase stemmed from a large increase in condominiums in Ontario and Quebec, a market segment that some experts warn is volatile and in danger of being overbuilt. Urban multiple housing starts rose 28.3 per cent, to 81,500 units.

But construction of new single homes also increased, up 1.3 per cent to 46,400 units in March.

“Higher multiple starts in Ontario and Quebec were the main contributors to the rise in new construction activity in March,” said Bob Dugan, CMHC’s chief economist. “While the multiples segment experienced the largest increase, the overall boost in starts was broad based, encompassing the singles segment as well.”

Economists had expected home building to pull back again in March, to about a pace of 130,000 new units a year, seasonally adjusted.

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