Housing starts hit a seasonally adjusted level of 157,300 in October, the CMHC said Monday. (Canadian Press)The seasonally adjusted rate of housing starts was up 8,000 units to 157,300 in October, the Canada Mortgage and Housing Corporation said Monday.
The agency attributed the increase to a spike in multiple starts. Multiple starts are the term used to described initial construction of dwellings designed for numerous people, such as condominiums.
The seasonally adjusted annual rate of urban starts overall increased by 5.2 per cent to 139,900 units in October. Urban multiple starts climbed 13.8 per cent to 72,600 units, while urban single starts declined by 2.7 per cent to 67,300 units in October, the CMHC said.
"The decline in singles is the first since activity bottomed in April, but starts in this sector are still a hefty 48 per cent above those low levels," BMO economist Robert Kavcic said.
Regionally, the seasonally adjusted rate of urban starts increased by 15 per cent in British Columbia, by 14.8 per cent in Ontario, by 6.5 per cent in the Prairies and by 1.2 per cent in the Atlantic.
Quebec was the lone region to see a decrease, dropping 11.6 per cent during the month.
"While homebuilding activity still has a long recovery ahead and cannot reasonably be expected to revisit boom-type levels over the next few years, the recovery seems well-engaged," TD Bank economist Pascal Gauthier said.
"The recovery in residential investment is being fuelled by low interest rates and rising confidence that the worst of the economic downturn is over," RBC economist Paul Ferley said.
