The seasonally adjusted annual rate of housing starts was 249,300 units in January, up from 212,600 units in December, Canada Mortgage and Housing Corporation (CMHC) reported today.

“Historically low mortgage rates, solid employment and income growth, and a high level of consumer confidence continue to support residential construction activity,” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre. “The volatile multiples segment bounced back in January, accounting for most of the growth this month. Although housing starts are expected to ease to 209,500 units in 2007, they will remain above the 200,000 mark for the sixth consecutive year.”

January’s seasonally adjusted annual rate of urban starts of 216,300 units was up 19.2% from December. Urban multiples surged 31.4% to 124,300 units in January, while singles jumped 5.9% to 92,000 units.

Urban starts in January rebounded in all regions, with urban multiple starts growing at a double-digit pace. Urban singles starts were up overall, but declined in Quebec and British Columbia. The Atlantic region experienced the largest percentage increase in urban starts at 36.2%

Rural starts in January were estimated at a seasonally adjusted annual rate of 33,000 units.

Compared to January 2006, actual starts in both rural and urban areas increased an estimated 12.2% in January 2007 while actual starts in urban areas only were up an estimated 11.9%. Actual single starts in urban areas were 14.3% lower in January 2007 than they were a year earlier, with all regions showing a decline. Actual urban multiple starts in January 2007 were up 37.7% over January 2006.

Meanwhile, Statistics Canada reported that the new housing price index remained at 147.5 in December. This was the first time since June 2000 that prices did not advance at the national level. Compared to one year ago, contractors’ selling prices increased 10.7%.

There were price increases in 9 of the 21 metropolitan areas surveyed, StatsCan said.