Canadian housing starts rose much stronger-than-expected, up 10.4% in October to 220,400.

October was the seventh month this year that starts surpassed the 200,000 mark, notes BMO Nesbitt Burns. This pushes the 12-month average to 198,500. October’s figure was also the highest recorded since March 1990.

The important single-family component increased 6.9% last month to an annualized 112,400 units, while the more volatile multiple starts rose 21.4% in October to 84,100 annualized units, neatly erasing all of the prior month’s decline, says Nesbitt. “Year to date, Canadian urban housing starts are 27.6% higher than for the same period last year. Starts were particularly strong in Ontario and British Columbia last month, but improved in almost all regions versus the previous month. The exceptions were Manitoba and Saskatchewan. However, all regions were above their 12-month trends.”

“Housing starts continue to be a driving force behind the economy’s resilience,” Nesbitt concludes. “With the Bank of Canada likely to stay on the sidelines well into next year, mortgage rates should continue to remain near generational lows and support the housing sector.”

http://www.cmhc-schl.gc.ca/en/News/nere/2002/2002-11-08-0815.cfm