TORONTO – Canada Mortgage and Housing Corporation (CMHC) released preliminary housing starts data for the Kitchener Census Metropolitan Area (CMA) today. Construction began on 103 homes in February, down from a relatively high 150 units started in the same month last year.

Builders poured 45 single-detached foundations in February, down from the 87 units started in February 2008. Townhouse construction increased to 37 units from the 21 units started a year earlier. Cambridge was the only municipality in the Kitchener CMA to record higher starts in February.

“Increased competition from the existing home market due to the high level of new listings has reduced spillover demand to the new home market”, said Erica McLerie, Senior Market Analyst for the Kitchener CMA.

ONTARIO HOME STARTS SLOW IN FEBRUARY

Toronto - Ontario home starts declined in February. Ontario preliminary Seasonally Adjusted Annual Rate (SAAR) of urban* home starts declined to 44,100 unit starts, down from 51,500 units in January. Most centres and home types across Ontario experienced declining construction volumes. Ontario activity was mirrored across the country with all area Canada home starts declining to 134,600 SAAR in February, from 153,500 SAAR in January.

The longer term trend for Ontario housing starts has been one of high starts levels gradually edging lower from peak levels in 2003-04.

“Similar to the story in the Ontario resale market, new construction has dropped below trend in February. A more accommodating resale market and rising inventories in the new home market dampened the pace of Ontario residential construction activity,” said Ted Tsiakopoulos, CMHCs Ontario regional economist.