According to the Canada Mortgage and Housing Corporation, housing starts increased in June to 197,400 units from 194,100 in May and April, and Ontario led the increase in housing starts.
The seasonally adjusted annual rate of urban starts rose 2.2 per cent to a total of 174,600 units in June, while urban single starts increased 11.1 per cent in June. Multiple urban starts dropped 3.1 per cent to a total of 103,700 units.
“Housing starts increased in June due to an increase in single and multiple starts in Ontario,” said the chief economist at the Canada Mortgage and Housing Corporation’s market analysis centre in a press release. “The revised numbers show that housing starts have been above their trend line since March. However, we expect housing starts to move back towards levels consistent with demographic fundamentals in the near term,” he said.
As for Toronto, the seasonally-adjusted rate of housing starts in the Toronto Census Metropolitan area jumped 23 per cent to 45,100 units. Single-detached starts rose from 8,100 in May to 14,700 in June, and multiple family starts rose 6.3 per cent to 30,400 units.
“More singles are starting thanks to some strength in pre-sales six months ago, said the Canada Mortgage and Housing Corporation’s senior market analyst for the Greater Toronto Area. “This momentum for singles should be short-lived due to the on-going challenge of a reduced supply of available lots and also some moderation in demand as interest rates begin to increase.”