Housing starts across Canada soared to yet another new record last month, as developers rush to take advantage of the country’s surging real estate market.
According to the latest data published by the Canada Mortgage and Housing Corp (CMHC), housing starts jumped by 21.6% from February, to an annualized 335,200 units in March. This marks the highest monthly total since 1977, as construction of multi-family units accelerated by 33.8%, and single-detached starts rose by 3.6%.
According to CIBC economist Royce Mendes, the sudden and sharp increase in housing starts came as abnormally warm weather enveloped many regions across Canada. Mendes also noted that the growth in new home construction will serve as a positive booster for Canada’s overall GDP growth this year, even in the event that building activity declines in the coming months.
The surge in construction is good news for the hot real estate market, which has been suffering from a supply shortage amid the ongoing housing demand boom. The imbalance has caused the average selling price to rise by a record 31.6% last month, according to the Canadian Real Estate Association (CREA).
Information for this briefing was found via the CMHC and CREA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
