Housing market going strong

Canadian housing starts grew unexpectedly strongly in February, again highlighting the contrast with the United States, where the battered housing sector has sparked an economic downturn. New home construction in Canada rose by 15.4 percent in February to a seasonally adjusted annualized rate of 256,900 units, from 222,700 units in January, Canada Mortgage and Housing Corp said on Monday. However, Canada Mortgage and Housing Corp. said yesterday that it still expects the trend in housing starts to head down by the end of this year. The seasonally adjusted annual rate of starts hit 256,900 units last month, CMHC said. It outstripped the consensus forecast of private sector economists by 51,900 units, and was also up from 222,700 units in January.

BC posted Canada's largest increase in housing starts last month as demand for condos in the Lower Mainland lit a fire under the homebuilding sector according to Canada Mortgage And Housing Corporation. BC posted an increase of 45.2 per cent in housing starts between January and February.