Canada Mortgage and Housing Corp. says the pace of housing starts, or rate of construction on new homes, picked up in February.
The agency estimates there were 11,097 actual starts in February, which extrapolated out over 12 months gives a seasonally adjusted annual rate of 192,094 starts, up from 180,481 in January.
It says the seasonally adjusted annual rate of urban starts, or new construction in cities, was up 7.5 per cent.
That clip is higher than experts were calling for, as the key regions like Toronto attempt to work through an oversupply of some housing types, namely condominiums.
“After weather-related weakness sent a chill through Canada’s homebuilding sector in recent months, activity began to heat up in February,” RBC economist Laura Cooper said.
RBC said that an equally unexpected pick up in building permits for new multiple-dwelling units, which include condos and townhouses, could see the pace of activity among builders remain elevated.
“As the spring housing market emerges and with building permits outpacing the level of housing starts … there remains some upside risk for housing activity to strengthen further,” Cooper said.
Multiple urban starts, which encompass townhouses and condos, rose 13.3 per cent to 116,458 in February, while single-detached urban starts slipped 2.4 per cent to 59,126.
The report says the seasonally adjusted annual rate of urban starts increased in Atlantic Canada and Quebec.
The rate was stable in Ontario and decreased in the Prairies and British Columbia.
– With files from the Canadian Press
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