Charles Rochfort, left, and Jonathan Grenier work on a home as Quebec lifts the ban on residential construction due to the COVID-19 pandemic Monday April 20, 2020 in Deux-Montagnes, Que. THE CANADIAN PRESS/Ryan Remiorz

Annual pace of housing starts down in December: Canada Mortgage and Housing Corp

Rural starts were estimated at a seasonally adjusted annual rate of 22,373 units

The annual pace of housing starts in December fell compared with November, according to Canada Mortgage and Housing Corp.

The monthly seasonally adjusted annual rate of housing starts for all areas in Canada, excluding Kelowna, B.C., fell 12.2 per cent in December from November, CMHC said on Monday.

The December survey was not conducted in Kelowna due to the COVID-19 pandemic, but CMHC said Kelowna’s exclusion didn’t impact the overall trends for the month.

The annual pace of urban starts fell 12.8 per cent in December as urban starts of apartments, condos and other types of multiple-unit housing projects dropped 15.1 per cent. Single-detached urban starts fell 5.5 per cent.

Rural starts were estimated at a seasonally adjusted annual rate of 22,373 units.

“December’s decline is unsurprising as some pullback from November’s massive level was to be expected,” wrote Rishi Sondhi, economist at TD Economics, in a note to clients on Monday.

“Still, homebuilding ended last year on solid footing, buoyed by gains in past home sales and population growth, a declining inventory of unsold new homes, as well as low interest rates.”

Despite the drop in December, CMHC says the six-month moving average of the monthly seasonally adjusted annual rates of housing starts climbed to 239,052 units for the final month of 2020, up from 236,334 in November.

Bob Dugan, CMHC’s chief economist, said that the pace of housing starts in 2020 surpassed 2019 in total, despite “pandemic-induced” declines early last year.

“Regionally, the December drop was concentrated in Ontario and Quebec, though both provinces saw the best year since 2004,” wrote Priscilla Thiagamoorthy, economist at BMO Capital Markets Economic Research, in a note to clients.

“That’s quite remarkable, especially for Quebec, given the fact that restrictions in the province forced the sector to grind to a halt in April.”

Sondhi of TD Economics wrote that despite a new wave of COVID-19 restrictions in Ontario and Quebec, homebuilders should be “relatively unscathed.”

“Focus now shifts to January, where, in the battle against the pandemic, Ontario’s government recently shuttered ‘non-essential’ construction activities,” Sondhi’s note to clients said.

“Notably, condo projects are allowed to continue, as can other residential projects for which a permit has been granted.”

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Real estate

Just Posted

Erin Jackson, the city’s director of corporate services, was appointed acting chief administrative officer for the City of Salmon Arm on June 15, 2021. (Photo contributed)
City of Salmon Arm appoints acting chief administrative officer

Heads of two city department to temporarily fill empty CAO position

The old Dirty Dirt Farm Co-op sign now hangs in the forest behind one of the cabins. (Jim Cooperman photo)
Column: The saga of the Dirty Dirt Farm Co-op

Shuswap Passion by Jim Cooperman

Brook Kosick competes in the barrel racing event at a BC High School Rodeo Association rodeo in Quesnel, which was held from June 11-13, 2021. (Cassidy Dankochik - Black Press)
VIDEO: 14-year-old Salmon Arm rodeo athlete Brook Kosick competes at provincial level

Quesnel rodeo on June 11-13 was first of season for Kosick, who said it meant everything to be back

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Second dose vaccinations accelerating throughout region: Interior Health

To date, more than 675,000 doses have been administered throughout the region

The third and last day of the Walking Our Spirits Home procession, honouring residential school survivors, the ones who never made it home and all those affected by the institutions, began at the Kamloops Indian Residential School on June 11 and stopped on June 13 outside the Adams Lake conference centre near Chase. The third day began about 10.5 kilometres from the centre and when it was complete, a closing ceremony was held. (Martha Wickett - Salmon Arm Observer)
Walking Our Spirits Home from Kamloops provides path to healing

First Nations in and beyond Secwépemc territory join in to honour residential school survivors

Bear wanders Kelowna on June 15. (Michelle Wallace/Facebook)
Bear climbs fence, uses crosswalk in Kelowna

The bear was spotted on Baron Road Wednesday evening

More flames
Lake Country home destroyed in massive blaze

Fire crews are responding to 10839 Hallam Drive

(Facebook/Kelowna Cabs)
Kelowna Cabs reaches tentative agreement with dispatchers union

The tentative agreement could help end the dispute between the taxi company and the dispatchers

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

201 First Street West 1980s. Prior revitalization. (Photo from Revelstoke Museum and Archives)
Man who redesigned downtown Revelstoke honoured with lifetime achievement award

Robert Inwood has worked on historical projects across the province

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

The weekly COVID-19 map for June 6 to 12. (BC CDC)
South Okanagan sees only 5 new cases in last week

The Similkameen Valley went a second week without any new cases

A heart of ribbons is seen on the fence of Highroad Academy along Chilliwack Central Road on Friday, June 4, 2021. (Jenna Hauck/ Chilliwack Progress)
Orange Heart Memorial campaign launches in Vernon on National Indigenous Peoples Day

North Okanagan Friendship Center raising funds for bench, mural memorializing 215 discovered in Kamloops

Most Read