Condominium construction revved back to life last month, pushing Canadian housing starts to the highest level this year.
Starts rose 5.4 per cent to a seasonally adjusted 157,300 units in October, Canada Mortgage and Housing Corp. said yesterday.
Starts on multiunit buildings jumped 13.8 per cent from a month earlier, while starts for single dwellings fell 2.7 per cent.
Low borrowing costs have spurred construction activity in recent months after a sharp drop earlier this year. Economists expect the pace to continue into next year as the Bank of Canada keeps interest rates at a record low of 0.25 per cent.
"The data are now starting to look more like a housing boom rather than merely a rebound," said Sheryl King, head of economics at Merrill Lynch Canada Inc., who expects prices in the new and resale housing markets will keep climbing.
Activity increased the most in British Columbia and Ontario, while starts fell in Quebec. National levels are still well below those of previous years, when they surpassed the 200,000 mark.
"Although housing starts remain depressed, with activity below the 175,000 units necessary to keep pace with population growth and attrition, it is clear that the trajectory for the sector is toward recovery," said Stewart Hall, economist at HSBC Securities (Canada) Inc.
Tavia Grant