September 9, 2009



OTTAWA — The seasonally adjusted annual rate (SAAR) of new housing starts skyrocketed 12.1 per cent in August. The Canada Mortgage and Housing Corporation (CMHC) reported a SAAR of new home construction of 150,400 units in August, up from 134,200 units in July.
“Housing starts are trending higher, reflecting improvements in both the single and multiple segments,” said Bob Dugan, chief economist at the CMHC’s Market Analysis Centre. “The improvement in housing starts is consistent with our expectation of a stronger second half for 2009.”
After strong increases in starts in May and June, the market took a bit of a breather in July, declining ever-so slightly. With that behind it, the market seems poised to resume its rise. Since the lows of April, new housing starts are up 27.9 per cent at SAAR.
As has been the case throughout this recession, the volatile multiple-family segment was responsible for most of the movement. Multiple starts were up 23.8 per cent to 77,600 units, while single family starts increased 2.5 per cent to 54,200.
British Columbia was the big winner in August. Starts in the province were up a whopping 56 per cent. The Prairies, Ontario and Atlantic Canada also did very well, with starts in those areas up 16.1, 13.8 and 9.6 per cent, respectively. Quebec brought up the rear with a 2.5 per cent increase in starts.
Rural starts were flat at a seasonally adjusted annual rate of 18,600 units in August.