The new home market in the Greater Toronto Area jumped in November as 4,605 new home constructions began, according to the data recently released by the Canada Mortgage and Housing Corporation (CMHC).
This number represents a significant increase of 83% compared to November 2009. While October 2010 recorded the lowest numbers of last year, they rocketed to their highest point since 2008 in a single month. Most of this increase was due to an growth in apartment construction, which is usually the most volatile segment, but positive growth was observed in all segments.
As predicted, the segment of high rise units was largely supported by condominium projects with pre-recession sales, while single-detached starts were on the rise thanks to 2009-signed sales contracts. When we look at the trends of 2010, we can see that single-detached house construction was on a slight downtrend, but evened out at the end of the year. On the other side, denser housing rose steadily throughout 2010 until it stumbled in October and thrived in November.
Last year's new homes construction starts before adding sums from December already surpassed the previous year total starts and they seem to flatten out at a rate of approximately 30,000 units annually.