Toronto Condo and Real Estate Blog

OTTAWA - April 11 (CNW Telbec) - The seasonally adjusted annual rate of housing starts was 210,900 units in March, up from 196,000 units in February, according to Canada Mortgage and Housing Corporation (CMHC).

“Both multiple and single starts regained some ground in March. Nevertheless, housing starts are gradually trending lower and were down more than 10% in the first quarter of 2007 compared to a year ago,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “This downward trend is consistent with our view that housing starts in 2007 will be lower than in 2006.”

March’s seasonally adjusted annual rate of urban starts was 177,900 units, up 9.1% from February. Urban multiple starts rose 12.0% to 92,700 units in March, while single starts increased 6.2% to 85,200 units.

Seasonally adjusted urban starts in March increased in all regions except the Atlantic. The Prairies led the way with a 26.2% increase, followed by British Columbia at 11.3% and Quebec with 10.5%. In Ontario, urban starts remained relatively flat. Urban multiple starts increased in all regions except in the Atlantic and Ontario, while urban single starts were up in all regions.

Rural starts were estimated at a seasonally adjusted annual rate of 33,000 units in March.

Actual starts, in rural and urban areas combined, were down an estimated 8.8% in the first quarter of 2007 compared to the same period in 2006. Actual starts in urban areas alone were down an estimated 10.3%. Actual single starts in urban areas were 16.3% lower than they were a year earlier, while actual urban multiple starts were down 5.3%.

Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency for more than 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, while making vibrant, healthy communities and cities a reality across the country. For more  information, visit www.cmhc.ca or call 1-800-668-2642.

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By Roma Luciw - Globe and Mail

The price tag for a new house edged 0.5% higher in February, with home-buyers in Regina experiencing the largest increase amid brisk sales, Statistics Canada said Thursday.

Contractors across Canada sold new homes for an average 10% more than they did last February, the report said, a smidgeon below the 10.1% year-over-year rise seen in January.

“The new house price index points to some moderation in the residential construction price deflator,” said Ted Carmichael, chief economist at J.P. Morgan Securities Canada Inc. “The rise in the new house price index also feeds directly into the CPI for shelter, and is expected to continue to support core services inflation in the coming months.”

Prices rose in ten of the 21 urban areas surveyed, with Regina leading the pack with a 4.7% rise as rapid sales led to prolonged construction times. New home prices in Québec and Edmonton climbed 2.7% in February.

“Costs for construction materials, labour rates and higher lot values were contributing factors in all three metropolitan areas,” Statscan said.

There were, however, signs of easing, as prices in eight areas did not budge. Windsor actually experienced a drop of 0.9%, due to new home buyer incentives.

On a year over year basis, prices in Edmonton jumped the most, rising 42.5%, followed by Calgary at 37.8%.

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Canadian Press

TORONTO — Canada’s real estate market got off to a strong start in 2007 with average prices rising in all major markets, according to Royal LePage Real Estate Services.

It says a combination of consumer confidence, moderately low interest rates and improved affordability led to greater sales in the first quarter.

It says the highest average price appreciation was in standard condos, which rose 16.3% to $230,146 year-over-year.

Detached bungalow prices rose 14.9% to an average $316,993 and standard two-storey properties increased 11.8% in price to $378,148.

Fuelled by the energy sector, Alberta’s economy continued to show extremely high price appreciation and that spilled over into Saskatchewan. Year-over-year condo prices rose 72.1% in Edmonton, 38.9% in Calgary and 42.9% in Saskatoon.

It says more moderate increases were noted in the central and eastern regions of the country.

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