ONTARIO RESIDENTIAL HOME STARTS EDGE HIGHER IN JANUARY

Toronto - Ontario preliminary Seasonally Adjusted Annual Rate (SAAR) of home starts across urban* areas edged higher in January. An estimated 53,300 residential housing units broke ground in January, up from 52,500 units in December. Single detached construction led the way while multi family construction, which includes semi detached, row and apartment dwellings posted declines. Actual residential home starts were 15 per cent above depressed levels from the same time one year ago. Ontario residential construction activity has trended higher since the first quarter of last year.

“Improving consumer sentiment and affordability conditions during the second half of last year has boosted demand for big ticket items, particularly demand for new single detached homes,” said Ted Tsiakopoulos, CMHC`s regional economist. “The construction of more modestly priced housing will also grow and should join the party soon, particularly as mortgage carrying costs rise through the course of this year. The Ontario new home construction industry will feel the tailwinds of an improving economy and buoyant 2009 resale market conditions this year,” added Tsiakopoulos.