Housing Starts Still Rising: CMHC

For the third month in a row, building starts were on the rise in this country, according to new data released by CMHC.

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These latest numbers signify the best three months in a row since last fall, which is welcome news to economists, who feel that this is a signal of good things to come for builders, and for the housing industry.

CMHC said in a release, “The seasonally adjusted annual rate of housing starts was 197,400 units in June. This is up from a revised 194,100 units in May 2011. April 2011 has also been revised to 194,100 units.”

“Housing starts increased in June due to an increase in single and multiple starts in Ontario,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “The revised numbers show that housing starts have been above their trend line since March. However, we expect housing starts to move back towards levels consistent with demographic fundamentals in the near term.”
The fact though, that there was overachieving on expectations, as well as upwards revisions on targets have not been lost on economists, who feel that this is a good sign for the economy, overall, because of the job growth and general economic stimulus that is associated with building and construction.

Looking at the country, region to region, June’s seasonally adjusted annual rate of urban starts increased by 24.1 % in Ontario, and by 5.6 % in the Atlantic region. British Columbia reported a drop of 27.6 % over the same period, while urban starts dropped by 3.6 % in Québec, and by 1.2 % in the Prairie region.

Rural starts were estimated at a seasonally adjusted annual rate of 22,800 units in June.
looking to this numbers it sounds like its good time ahead for first time home buyers because of lower interest rates around.

info: http://ca.reuters.com/article/businessNews/idCATRE74T2QY20110530