Housing starts within Newfoundland and Labrador urban centres were weaker in February, according to preliminary data released today by Canada Mortgage and Housing Corporation.

In February, there were a total of 75 new homes started within Newfoundland and Labrador urban centers. This level of activity represented an 18.5% decline from the 92 housing starts recorded in February of 2004. Year-to-date activity, at 152 units, is virtually unchanged from the 154 units started during the first two months of 2004.

“Following a strong start to the year, residential construction activity tailed off in February,” said Brian Martin, senior market analyst with CMHC in Newfoundland and Labrador. “Losses were almost entirely due to fewer single-detached starts which posted a decline of 32.6% from last year,” continued Martin. “Increased speculative construction activity late last year and competition from a growing supply of existing homes being placed on the market for sale are viewed as two of the major reasons behind the dip in single-detached activity. Multiple unit construction remained brisk in February with starts only slightly lower than the year before.”

For Canada’s urban centres, total housing starts in February decreased 2% when compared to 2004. Single-detached starts declined nine per cent from the same period last year to 4,885 units, while multiple starts advanced 5% to 5,912 units. In Atlantic Canada, residential construction in urban centres was at 238 units in February, representing an increase of 20% over the same month last year.

Canada Mortgage and Housing Corporation conducts a monthly survey of housing construction in urban centres of Canada with a population of 50,000 and over.