Jan 10 2008
CMHC: 229,600 housing projects started in 2007
Yesterday the CMHC (The Canadian Mortgage & Housing Corporation) announced that 2007 saw 229,600 housing starts, the second highest in 2 decades. “Growth in 2007 housing starts was driven by low mortgage rates, solid employment, income growth and a high level of consumer confidence,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Even with the weakness in residential construction in December, new home starts are estimated at 229,600 units in 2007, surpassing 2006 levels.”
December housing starts were down significantly compared with November. While some took this as a market indicator the CMHC had another explaination. Bob Dugan pointed out the exceptionally cold December in Toronto as a significant cause of the decline and pointed out the large number or condominium pre sales indicate a lot of activity to come.