Canadian Condo Starts Expected to Decrease

The Canada Mortgage and Housing Corporation (CMHC) recently announced that Canadian housing starts were trending at 197,747 units in September 2014, which is a slight increase to the trend measure of 191,095 in August.

A six-month moving average of monthly seasonally adjusted annual rates (SAAR) is used to generate the trending measure. The figures are based on modified start numbers that account for seasonal variation. The modified figures are then multiplied by 12 to represent the annual average.

The standalone SAAR for September was 197,343 units, a small jump from August’s 196,283. “The increase in the trend reflects stronger starts activity since April, largely concentrated in multi-unit dwellings including condominiums,” said Bob Dugan, CMHC’s Chief Economist. “However, the currently elevated level of condominium units under construction supports our view that condominium starts should trend lower over the coming months.”

The SAAR of urban starts was trending at 177,019 in September, compared to 176,234 in August. The SAAR of multiple urban starts was up, reaching 114,579 units, while single-detached urban starts decreased to 62,440.

Quebec, Ontario, and the Prairies were the regions that experienced increases in urban starts, while British Columbia and Atlantic Canada saw decreases. CMHC estimates the SAAR of rural starts to be around 20,324 units.

September 2014 construction highlights

Last month, we celebrated breaking ground at three different low-rise sites in Brampton, Barrie, and Markham.

In Barrie, Skyline International Development recently commenced the construction of Building One at Copeland House Condominiums. This is a resort community that offers an all-season lifestyle, which has become very popular over the past year.

Skyline’s Chairman and President Gil Blutrich (fourth from the left) celebrated the official groundbreaking of HorseshoeCopeland House with (L-R) Horseshoe Valley Property Owners Association (HVPOA) Director Barb Coutanche, Oro Medonte Ward 1 Councillor Mel Coutanche, MPP Garfield Dunlop’s wife Jane Dunlop, Mayor Harry Hughes and Skyline principals including CEO Michael Sneyd, President and COO Kevin Toth, V.P. of Sales and Marketing John Giffen and V.P. of Development Dan Piggott. Photo by Arthur Mola

Located within Skyline’s renowned Horseshoe Village community, Copeland House is rising in an established area by a company that knows how to appeal to those who desire an active lifestyle. When construction started, Building One was 80 percent sold. To learn more about Copeland House, click here.

In Brampton, Aspen Ridge Homes, CountryWide Homes, Greenpark, Marycroft Homes, and Regal Crest Homes invited Miss India Canada Annu Gaidhu to tour the presentation centres at Mayfield Village to pose for photos with the potential homebuyers and sales staff, celebrating the start of construction.

Annu Gaidhu at Mayfield Village

The first phase of Mayfield Village features townhomes, semis, and singles, starting from the mid $300,000s. The singles in Phase 1 have been selling quickly, and a wide selection of towns and semis are available.

In Markham, Briarwood Homes broke ground at Havelock Town Manors. This is a luxury community of just 25 executive townhomes. At the beginning of construction, the community was about 50 percent sold. The homes range from 2,100 to more than 2,200 square feet and prices start at $559,990.

Breaking ground at Havelock

We’re just over a week into October, and we’re anxious to see if Dugan’s prediction about condo starts easing off over the next few months comes true. Stay tuned - we’ll be keeping our eye on CMHC’s monthly reports!