Both January and February have been strong months in the real estate market, as Canadian housing starts continue to rise month over month. Groundbreaking in Ontario has led the way compared to the rest of Canada with an increase of 25.1% increase in January alone. The weather is being seen as one of the main drivers for the constant increase, which may result in a slowdown later in the year.
A rise in housing starts to start the year
2017 has started strong, with an unexpected rise in starts in January compared to December 2016. The Canadian Mortgage and Housing Corporation (CMHC) has reported 207,408 units starting up in the month of January, up from 206,305 in December of last year.
Growth in the Ontario job market, lower rental vacancy rates, and less choice in the resale market particularly for single-family homes has helped facilitate the upward pressure on home starts ultimately leading to a continuing increase month over month.
February another month of growth
It’s been long overdue, but economists are finally starting to call the Toronto market a bubble, with the city posting annual increases month after month in the double digits and the market still not cooling down. Obviously, this is impacting surrounding regions, most notably the Niagara real estate market.
February in Canada saw the housing starts pushing the six-month average to the highest level since 2015. A 12.1% increase in single starts guided this growth, as multiples (condominiums, apartments, etc.) saw a 4.7% drop.
Federal assistance in cooling the market down
The CMHC reported new single-detached home construction projects, typically the most expensive segment of the market, reaching levels in Ontario that haven’t been seen since July 2008. With a bit of help from the federal government, steps are being taken to cool the market down along with preventing homeowners from taking on too much debt.
A strong market that doesn’t look to be slowing down anytime soon means there’s big opportunity for sellers and people looking to invest into the real estate market. Connect with Team Davids today if you’re looking for a fast and effective way to get into the market, whether you're buying or selling a home. We have the experience and expertise you need to ensure you get the win(s) you’re looking for!