TD Economics Report Feb 8, 2017

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TD Economics brought to you by Dina Ignjatovic, Economist

 

Data Release: Housing starts kick off the year on strong footing

 

  • Canadian housing starts kicked off the year on a strong note, with homebuilders breaking ground on 207k units (annualized) in January.  This extends December's sharp gain, and pushes the 6-month moving average up just shy of the 200k unit mark.

 

  • The strength in January stemmed from the multi-family sector, which was up 4.2% following a 14% gain in December.  Meanwhile, single family construction was down 4.6% on the month, reversing some of December's gains.

 

  • Regionally, Ontario remained the key driver of growth, with starts up by a whopping 25% in January.  Homebuilding in the Atlantic Provinces was also up during the month while the remaining regions recorded declines.  B.C. experienced the largest pullback, as home starts slid 33% from the month prior.

 

Key Implications

 

  • Overall, housing starts have been hovering around the 200k mark annualized (on a trend basis) for the last six quarters, or just slightly above the current rate of household formation.  However, homebuilding construction should begin to slow over the course of the year, consistent with a cooling in overall housing market activity.

 

  • Still, the recent strength in multi-unit projects could have further room to run given the surge in building permit approvals seen over the second half of last year. This could be partly offset by single-family construction, which is already at relatively lofty levels.

 

  • The regional story will continue to reverberate across the housing markets, with central Canada leading the way, while B.C. and the oil-rich provinces lagging behind.

 

 

GETTING THAT DOWNPAYMENT: It might be easier than you think!
 March 1 2016     Posted by Jennifer Gaudet

GETTING THAT DOWNPAYMENT: It might be easier than you think!

For many first-time homebuyers, saving the 5 per cent downpayment is one of the big obstacles to home ownership, especially if you're paying rent, paying down student loans, and trying to live a life.  Here are some programs and tips that can give your downpayment a boost – to get you into your home faster:

  1. The federal Home Buyers' Program (HBP) lets first-time homebuyers withdraw up to $25,000 each (or $50,000 for a couple) tax-free from their RRSPs.  You'll need to pay those funds back, of course, on a repayment plan.
  2. A financial gift from a parent or blood relative can be used as a downpayment. You'll need to document in writing that the funds are a gift and that you are not required to pay the money back at any time.
  3. A parent or grandparent could also provide a loan with a modest interest rate and reasonable expectations for loan repayment.  Or you could look at borrowing the downpayment through a loan or unsecured line of credit.
  4. If your dream home is out of reach, look for a starter home. Use today's low interest rates to start hammering down your mortgage, then watch for the opportunity to get the home of your dreams – using the equity and credit rating you've been building!

Talk to us today – to ensure that you get off on the right foot in your home buying journey!

 

Canforce Mortgage Inc. Greenwood, NS 

Jennifer Gaudet, Owner/ Broker 

Military Mortgage Broker 

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Jennifer Gaudet
Associate Mortgage Broker - Military Mortgage Specialist

Jennifer Gaudet

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