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.
Starting Smart: Savvy first-time home buyers are going to brokers
March 1 2016 Posted by Jennifer Gaudet
Starting Smart: Savvy first-time home buyers are going to brokers
You’ve got to hand it to this younger generation. They’re internet-savvy, they do their homework, they ask questions, they look for choices… and they’re not inclined to let anyone “own” them or their business. According to the 2014 Mortgage Consumer Study conducted by the Canadian Mortgage & Housing Corporation (CMHC), more Canadians are working with mortgage brokers than ever before. But first-time homebuyers top the charts: 48% of first-time mortgages now originate with a broker.
Why are they choosing the professional mortgage route? You could start with choice, price, information, and education. I provide solutions from a huge range of mortgage options from a broad spectrum of lenders, including most of the major banks! Not a first-time buyer? No problem. It’s never too late to “start smart” on your financial future!
Jennifer Gaudet
Associate Mortgage Broker - Military Mortgage Specialist
- 902-824-2906
- jennifer@jennifergaudet.ca
- Licence # 2024-3000814
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