News: May 2011 Housing Starts

OTTAWA, June 8, 2011 — The seasonally adjusted annual rate1 of housing starts was 183,600 units in May, according to Canada Mortgage and Housing Corporation (CMHC). This is up from 178,700 units in April 2011.

housing-start-may-2011“Housing starts increased modestly in May due to an increase in multiple construction in most provinces and in rural starts,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “The increase in multiples and rural starts was partly off-set by a decrease in single starts.”

The seasonally adjusted annual rate of urban starts increased by 0.8 per cent to 161,000 units in May. Urban multiple starts were up by 4.0 per cent in May to 100,000 units, while single urban starts decreased by 4.1 per cent to 61,000 units.

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Good News: Canadian Housing Market Stabilizing in 2011

New Housing Starts 2011OTTAWA, May 30, 2011 — Housing starts are forecast to stabilize at levels consistent with demographic fundamentals in 2011 and 2012, according to Canada Mortgage and Housing Corporation’s (CMHC) second quarter Housing Market Outlook, Canada Edition.1

Housing starts will be in the range of 166,600 to 192,200 units in 2011, with a point forecast of 179,500 units. In 2012, housing starts will be in the range of 163,200 to 207,500 units, with a point forecast of 185,300 units.

“Modest economic growth, in conjunction with relatively low mortgage rates, will continue to support demand for new homes in 2011 and 2012. Nonetheless, we are expecting new and existing housing markets to fall in line with demographic fundamentals, as changes to mortgage rules take hold,” said Bob Dugan, Chief Economist for CMHC.

Existing home sales will be in the range of 429,500 to 480,000 units in 2011, with a point forecast of 452,100 units. In 2012, MLS®2 sales will move up and are expected to be in the range of 410,000 to 511,900 units, with a point forecast of 461,300 units.

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