http://www.ottawabusinessjournal.com/285578443587547.php
Ottawa builders fast off the mark in '06
By Ottawa Business Journal Staff
Wed, Mar 8, 2006 8:00 AM EST
Ottawa homebuilders are off to a fast start in 2006. February housing starts were up 25 per cent from the same month a year ago, and construction of single-family homes was particularly strong.
Canada Mortgage and Housing says builders began work on 290 units last month, compared to 232 in February 2005. Single-family starts almost doubled to 110 units, while multi-family starts rose 10 per cent to 180 units.
The increase in single-family starts early in the year is a positive sign, according to CMHC.
"Increasing detached home starts are indicative of second and third-time home buyer demand. Rising detached home prices appear to have had little effect on in dampening home buying activity," says housing analyst Dana Senagama.
For the first two months of the year, housing starts are up eight per cent from 2005 levels, with 680 starts recorded so far. Starts of detached homes have jumped 36 per cent to 209 units.
Nationally however, housing starts fell 2.9 per cent to an annualized rate of 240,900 in February from a revised annual rate of 248,100 for January. That was still higher than economists had predicted.
"Despite the modest decline, the rate of housing starts in February
continued to be very strong." says Bob Dugan, chief economist at CMHC. "However, we expect activity to moderate over the course of 2006, as higher mortgage carrying costs due to rising house prices and modest mortgage rate increases contribute to a softening of demand for both existing and new housing."
The booming economy in Western Canada propelled starts higher in both
British Columbia and the Prairies, while urban starts were down in the rest of the country. The sharpest declines were in the Atlantic region and Ontario.
Ottawa builders fast off the mark in '06
By Ottawa Business Journal Staff
Wed, Mar 8, 2006 8:00 AM EST
Ottawa homebuilders are off to a fast start in 2006. February housing starts were up 25 per cent from the same month a year ago, and construction of single-family homes was particularly strong.
Canada Mortgage and Housing says builders began work on 290 units last month, compared to 232 in February 2005. Single-family starts almost doubled to 110 units, while multi-family starts rose 10 per cent to 180 units.
The increase in single-family starts early in the year is a positive sign, according to CMHC.
"Increasing detached home starts are indicative of second and third-time home buyer demand. Rising detached home prices appear to have had little effect on in dampening home buying activity," says housing analyst Dana Senagama.
For the first two months of the year, housing starts are up eight per cent from 2005 levels, with 680 starts recorded so far. Starts of detached homes have jumped 36 per cent to 209 units.
Nationally however, housing starts fell 2.9 per cent to an annualized rate of 240,900 in February from a revised annual rate of 248,100 for January. That was still higher than economists had predicted.
"Despite the modest decline, the rate of housing starts in February
continued to be very strong." says Bob Dugan, chief economist at CMHC. "However, we expect activity to moderate over the course of 2006, as higher mortgage carrying costs due to rising house prices and modest mortgage rate increases contribute to a softening of demand for both existing and new housing."
The booming economy in Western Canada propelled starts higher in both
British Columbia and the Prairies, while urban starts were down in the rest of the country. The sharpest declines were in the Atlantic region and Ontario.
