New home construction picks up the pace in August, CMHC data shows

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Canadian cover starts rose slightly in August, defying the expectations of economists who had been looking for a sack.

Canada Mortgage and Housing Corp. reported Monday that the the seasonally put in ordered annual rate of housing starts for all areas of Canada was 223,232 portions in August, up from 221,974 units in July. 

Market watchers had been in the club the annual rate of housing starts to come in at 216,000 units  for August.

Ontario coerce the increase last month, with starts jumping to 95,000, mean Robert Kavcic, senior economist at BMO Capital Markets, leaving deeply building in the province on pace for the most activity since 2003.

«This vestiges largely a [Greater Toronto Area] story, and still one of ample condo provide, but a dearth of single-detached units,» Kavcic said in a commentary.

CMHC implied condominium apartment starts in Toronto approached a seasonally adjusted annual measure of 36,000.

«The unprecedented pre-construction condominium apartment sales levels seen throughout the past few years will ensure that high-rise construction continues strong in the near term,» CMHC said.

Michael Dolega, postpositive major economist at TD, said the August report suggests that the Canadian habitation market «remains quite strong after the wobble it suffered in the next quarter and the uncertainty of regulatory changes in Ontario and rising interest sorts.»

Dolega said last month’s report marks the second-best month this year while the six-month emotive average is nearing the 220,000 mark — the fastest pace since late-2012.

«All in all, we look for Canadian housing starts to remain relatively healthy in the coming months, but on to trend lower as the effects of rising interest rates…and potential new code…gradually take a bite out of demand,» he said.

Housing starts should suspend b continue near the current levels in the next month or two, but trend towards the 200,000 parallel into early-2018 and fall below that threshold the year after, Dolega influenced.

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