CMHC:Canada Nov Home Starts Soar To 252k SAAR;Top Expectations

--Six-month trend Up To Highest Level In Nearly 10 Years 

By Courtney Tower

     OTTAWA (MNI) - Canada's home building starts in November soared to a

seasonally adjusted annual rate of 252,184, up 13.2% from 222,695 in October,

largely on multiple-unit activity in Greater Toronto, Canada Mortgage and

Housing Corporation reported Friday.

     The six-month moving trend, which Canada Mortgage and Housing Corporation

prefers to accentuate, rose 4.4% to 226,270 SAAR from 216,642 in October, "its

highest level in almost 10 years," CMHC said.

     "This largely reflects construction of multiple units in Toronto, where

evidence of overbuilding is low due to the decreasing inventory of completed and

unabsorbed multiple units and strong demand," Bob Dugan, chief economist, said.

     With the exception of September's decline, there has been a full year of

monthly increases in housing starts, and in the six-month moving trend. 

     For the month of November, the SAAR of urban starts rose by 14.4% to

235,412 units SAAR. Multiple urban starts were up 16.9% to 175,016. Single

detached urban starts were up 7.5% to 60,396 units.

     For the Toronto Census Metropolitan Area (CMA), the CMHC statement said

that "escalating house prices of single-detached homes" have continued to force

more homebuyers into "lower-priced condominium apartments and townhomes," and

more such activity is expected.

     "Higher sales of pre-construction condominium units in the past two years

will continue to break ground throughout this year resulting in more condominium

apartment starts," the agency said.

     Total starts in Toronto CMA in November were 3,900, up 42% according to

CMHC's statistics. Single-detached starts, on the other hand, were down 32%

year-over-year.

     In Ontario areas within the orbit of Greater Toronto, there were

"significantly higher" starts in November year-over-year. For instance : London

CMA, a 13-year high for single-detached homes and a new record in apartment

starts; for Kitchener-Cambridge-Waterloo, lower single home starts but starts

for townhouses up 51% and for apartments up 26%. For Guelph, higher apartment

starts in a rental market tight with a vacancy rate of 1.2%.

     For the Vancouver CMA, over recent years the other great hotspot for

housing starts and prices, seasonally adjusted monthly starts declined in

November. And they are flat SAAR from November a year ago, 2,638 units versus

2,651 a year ago.

     On the Prairies, in Alberta, Calgary showed a 102% increase in starts

year-over-year while Edmonton was down 6%. Regina, Saskatchewan, showed a 41%

increase year-over-year. The province of Manitoba as a whole, in which Winnipeg

has by far the largest population, showed only a 1% increase on the year.

     Starts in the Atlantic provinces were up 18% to 715, and in the province of

Quebec up 43%to 4,082.

     Rural starts for the country, SAAR, totaled 16,772 units in November.

--MNI Ottawa Bureau; +1 613 869-0916; email: yali.ndiaye@marketnews.com

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