Signs of strength in Canada's housing market
Updated Thu. Jul. 9 2009 10:05 PM ET
CTV.ca News Staff
New data suggests the Canadian housing market has already bottomed out as there was an 8 per cent rise in housing starts in June, the first consecutive monthly increase this year.
While new home construction remains about a third lower than last year, a report from TD Economics says the new numbers are encouraging.
The figures "provide more evidence that the Canadian economy has certainly passed the worst of what can be expected in terms of residential investment contraction," TD said in a report released Thursday.
Sales have picked up dramatically in a number of cities, including Edmonton and Toronto.
The Edmonton Real Estate Board said June's sales were third highest ever for the month.
Regionally, there was a 59.4 per cent increase in urban housing starts in the Prairie regions, a 25 per cent gain in B.C. and a slight 3.1 per cent increase in Ontario.
Analysts point to lower price and better interest rates for the spike in home sales.
However, it wasn't good news straight across the country as housing starts in Quebec fell 6.3 per cent and 3.1 per cent in Atlantic Canada.
Immigrants fuelling market
A new report from Scotiabank says that recent immigrants have been driving housing demand in the country.
The reports says census Data shows what 72 per cent of immigrants lived in home owned by someone in their family in 2006, up from 68 per cent in 2001.
Canadians born in the country only saw an increase of 2 per cent of those living in a home owned by a family member, from 73 to 75 per cent.
"Given Canada's aging population and relatively low fertility rates, longer-term household formation and housing needs will be largely determined by immigration," Scotiabank senior economist Adrienne Warren said.
Warren said immigration could account for 75 per cent of growth for Canada's population in a decade.
Updated Thu. Jul. 9 2009 10:05 PM ET
CTV.ca News Staff
New data suggests the Canadian housing market has already bottomed out as there was an 8 per cent rise in housing starts in June, the first consecutive monthly increase this year.
While new home construction remains about a third lower than last year, a report from TD Economics says the new numbers are encouraging.
The figures "provide more evidence that the Canadian economy has certainly passed the worst of what can be expected in terms of residential investment contraction," TD said in a report released Thursday.
Sales have picked up dramatically in a number of cities, including Edmonton and Toronto.
The Edmonton Real Estate Board said June's sales were third highest ever for the month.
Regionally, there was a 59.4 per cent increase in urban housing starts in the Prairie regions, a 25 per cent gain in B.C. and a slight 3.1 per cent increase in Ontario.
Analysts point to lower price and better interest rates for the spike in home sales.
However, it wasn't good news straight across the country as housing starts in Quebec fell 6.3 per cent and 3.1 per cent in Atlantic Canada.
Immigrants fuelling market
A new report from Scotiabank says that recent immigrants have been driving housing demand in the country.
The reports says census Data shows what 72 per cent of immigrants lived in home owned by someone in their family in 2006, up from 68 per cent in 2001.
Canadians born in the country only saw an increase of 2 per cent of those living in a home owned by a family member, from 73 to 75 per cent.
"Given Canada's aging population and relatively low fertility rates, longer-term household formation and housing needs will be largely determined by immigration," Scotiabank senior economist Adrienne Warren said.
Warren said immigration could account for 75 per cent of growth for Canada's population in a decade.
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