Last Friday, Canada Mortgage and Housing Corporation (CMHC) reported the figures for starts across the country. The work has begun on 253,468 new units showing a 14% rise in homebuilding. It’s a great sign for the housing market given the year started on a sluggish note with a 10% drop between December and January. The trend started looking up in February.
February saw 245,665 units – a 0.4% rise on a month-over-month basis.
CMHC’s full report breaks down the starts area-wise. In February, Urban centres, which are areas with populations of at least 10,000 — witnessed an 11% growth to 17,495 units annually. The year-over-year increase can be attributed to higher multi-unit starts, which were up 16%. At the same time, single-detached starts dropped 14% in the month as per CMHC.
CHMC added in its report, “February’s actual housing starts were 10% and 82% higher year over year in Toronto and Vancouver, respectively, because of higher multi-unit starts, while single-detached starts decreased. Montreal’s actual starts decreased 9%, as both housing segments were lower.”
As per some economists, it’s a market “bounce back”. The reading gives a positive sign for the arrival of the good days in the housing market. At the same time, some experts, including Home Realty President, John Lusink, say it’s a bit premature to think the homebuilding market is back on track.
In conversation with STOREYS, Lusink said, “We are just so far short of being able to satisfy real demand… I also think there’s also been quite a catch-up leftover from COVID when there were months of supply chain issues and delays… I think developers who had projects on the books and were ready to go, as they began to see these numbers dwindling — and of course, buyers backing out and not being able to qualify — they pulled developments off the market.”
CIBC analyst Katherine Judge, however, has a positive outlook on the current market.
She recently stated, “Homebuilding is still likely to show a modest retreat in Q1 overall, but the drag on GDP growth from residential investment will be limited by the increase in resale activity.”
Since before the Budget Day on April 16, Prime Minister Justin Trudeau has been making announcements addressing the housing crisis facing the North American nation. From incentivizing the construction of affordable housing to reconstruction, these plans promise to improve the housing infrastructure of Canada.
The real estate sector’s most influential leaders and innovators will be gathering in Calgary for a conference that, in all probability, is going to be the biggest real estate event in Alberta. Titled, ‘Rock’N REAL ESTATE 2024’, the BUZZ conference will be taking place in Carriage House Hotel & Conference Centre on Thursday, May 2. The meeting will open at 7:30 am with a light continental breakfast. The discussion will go from 8 am to 5 pm followed by an hour of networking session at the end of the event. Cocktails on the house!
Canadian housing activity was largely stable in March, but a key spring selling season lies ahead. Existing homesales edged up 0.5% in March (seasonally adjusted) and were up a modest 1.7% from sluggish year-ago levels (although an early Easter long weekend likely reduced volumes somewhat). While current activity might seem quiet compared to the exuberance in 2021 and early 2022, sales volumes are trending about in line with pre-COVID norms, albeit at the low end of that range.
“We are changing the way we build homes in Canada. In our housing plan and Budget 2024, we are delivering ambitious action and investments to build more homes, make it easier to rent or own, and help the most vulnerable with stable housing. This is about restoring fairness for every generation, and housing is at the heart of that”, said Canadian Prime Minister, Justin Trudeau about the country’s new housing plan.
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