Mike in TO
Senior Member
TORONTO, JULY 10,
2007 – The Canada Mortgage and Housing Corporation (CMHC) has released preliminary housing starts data for June 2007. The seasonally-adjusted annual rate (SAAR) of starts decreased to 28,000 from 38,000 in May. A low rate of multiple-family construction last month pushed the rate for total starts below trend.
On an unadjusted basis, housing starts for the first half of 2007 were 20 per cent lower compared to the first half of 2006. Condominium apartment starts have been well below expectations over the past six months. This slow-down led to the overall decline in new home starts.
“Fewer condominium apartment starts during the first six months of the year were at the root of the decline in total housing starts,†stated Jason Mercer, CMHC’s Senior Market Analyst for the Greater Toronto Area. “With the number of condominium apartment units under construction remaining near record levels and completions well below last year’s results, high-rise developers have found it difficult to shift resources to new projects. The record level of high-rise sales experienced over the past two-and-a-half years will convert into strong starts moving forward through 2008.â€
2007 – The Canada Mortgage and Housing Corporation (CMHC) has released preliminary housing starts data for June 2007. The seasonally-adjusted annual rate (SAAR) of starts decreased to 28,000 from 38,000 in May. A low rate of multiple-family construction last month pushed the rate for total starts below trend.
On an unadjusted basis, housing starts for the first half of 2007 were 20 per cent lower compared to the first half of 2006. Condominium apartment starts have been well below expectations over the past six months. This slow-down led to the overall decline in new home starts.
“Fewer condominium apartment starts during the first six months of the year were at the root of the decline in total housing starts,†stated Jason Mercer, CMHC’s Senior Market Analyst for the Greater Toronto Area. “With the number of condominium apartment units under construction remaining near record levels and completions well below last year’s results, high-rise developers have found it difficult to shift resources to new projects. The record level of high-rise sales experienced over the past two-and-a-half years will convert into strong starts moving forward through 2008.â€
Taller towers require cranes and construction crews longer making it difficult to start additional projects.