Housing starts didn’t keep pace with the resale market

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By Elli Davis, September 7, 2009

While the Toronto real estate resale market kept recovering fast also in July, new housing start-up rates slightly moderated in Ontario and all over the country, according to the recent Canadian Market Overview by CMHC.

The seasonally adjusted annual rate of housing start ups in Canada was 134,200 units in July, compared to 137,800 recorded the previous month, following the overall declining trend which began two years previously.

The only fast developing province was Quebec, with a 21.9% increase (8300 new units), while the biggest drops appeared in Ontario (-14.6%) and Alberta (-12%). The decline of Ontario's urban housing was -15%, what moved Ontario (36,900 units) to the second position in urban housing in Canada start ups after Quebec (40,000 units).

Moderating housing start ups signalize to homeowners and realtors the calmer thinking of developers, which can result in the strengthening of the resale market and raising the property values in Toronto and other areas in the near future.