Following a significant slowdown late February, the Canadian housing market’s annual has started up as of March. This information comes from a report released by the Canada Mortgage and Housing Corporation.
According to CMHC, the Canadian housing market starts spiked upwards up to nearly 200,000 units, at 192,527. In February we saw 166,290. The increase is significant, yet not what economists predicted. According to Thomson Reuters Eikon, 196,500 was expected.
Multiple-units in urban areas climbed 18.6 percent back in March, where we saw 135,894 units. Single-detached units in those same urban areas increase 12.1 percent, and we saw 42,139 units. Rural areas saw 14,494 units.
“There’s no doubt the Canadian housing market has slowed in the past year, but the latest data on construction suggests the downward trend is stabilizing,” stated Sal Guatieri of BMO Capital Markets.
“We still see starts hovering around, or even just above, 200,000 this year, marking a small step back from last year while remaining historically high,” said Sal Guatieri.
In March, an average seasonally annual rate, adjusted monthly, was 202,2779, where as in February, it was at 202,039.
In order to help new home buyers, the Federal government has made various changes. Mortgage rates, along with very tight lending regulations have made it incredibly difficult for first time buyers.
For households that make under $120,000 annually, the government is proposing a 5% handout. Borrowing from an RRSP account has also been modified. Previously at $25,000, you can now borrow up to $35,000.