Condo Sales Driving Up Housing Stats.
Canadian home builders have started 2020 with a dramatic increase in starts which is good news for the Canada's increasingly limited real estate market.
January units are up to 213,224, up close to 9% from a 195,892 in December of last year, according to a statement released today by the Canada Mortgage and Housing Economists had earlier anticipated starts would be in the 200,000 range.
These numbers are the highest level of new construction in over four months, after a slowdown at the end of 2019. As housing demand is increasing, a shrinking supply of available homes is at the same time driving up prices in most cities across the country.
Statistics Canada's Monday report stated that permits for building have risen 7.4% in December, more than double the 2.8% median forecasted. This overall increase is consistent with the housing starts for January and included a 47% increase in the GTA.
A combination of low unemployment, increased populations growth and cheap borrowing costs have brought buyers back into markets in a big way. Combine this with the overall shrinking supply, its not surprising that the rising number of buyers is driving prices and bidding for homes higher in places like the GTA, where there is already a 9% increase over the same month last year.
Starts in both Toronto and Montreal were up over 50% from December.