The phrase “the highest since 2007” is becoming a recurring sight when describing sales levels and the start to May is no exception.
Single family home sales are up 22.5% in the first week of May with a total of 370 transactions. Condo sales are up 16% year-over-year with 145 units changing hands. SFH and condo sales for the first week in May are…the highest since 2007 😛
The luxury segment continues to show exceptional strength with 25 single family homes selling for $1 million dollars or more in the first week, blowing past previous years.
Calgary region home builders had an extremely busy month in April with housing starts skyrocketing compared with a year ago.
According to preliminary figures released Tuesday by Canada Mortgage and Housing Corp., housing starts in the Calgary census metropolitan area totalled 1,708 units in April, up from 556 units in the previous year, or by 207.2 per cent
Read the entire article in today’s Calgary Herald.
Canadian Housing Starts
Homebuilding in Canada displayed “unexpected oomph” in March, with housing starts rising 5% to 216K, beating expectations and posting the strongest month we’ve seen since the recession.
Read TD Economics research note
The bubble-mongering that has been going on seemed overplayed for some time given that housing starts were running only slightly above household formation (about 180k), on average, for the past three years. But that is no longer true with starts now moving well above underlying demand, and accelerating in recent months.
Read BMO’s research note
Today’s report showed that, following a robust first quarter, Canadian housing starts strengthened even further in April. This suggests that the relatively high level of starts in the early part of this year may not have been entirely due to warmer than usual winter weather (which would imply some easing heading into the spring). Factors such as the persistence of low mortgage rates may be contributing to the rapid pace of new building.
Read RBC’s research note
“Wow,” Scotia Capital economist Derek Holt said in a report to clients. “This report reflects unbelievable strength in Canadian housing starts, and all of the gain was in multiples again which reflect the ongoing Canadian condo craze.”
But there are worrying signs of a bubble emerging in key markets, such as downtown Toronto. Canada now has the highest stock of unsold newly built condos since the early 1990s, Mr. Holt pointed out.
Mr. Holt said CMHC estimates show that roughly 25 per cent of condominiums in the Greater Toronto Area are sold but sitting vacant — shades of Miami at the height of its collapsed condo bubble in 2007. Other analysts say the 25 per cent figure may be too low.
“This is the ghost city phenomenon,” Mr. Holt said.
Read the entire article in today’s Globe & Mail
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