According to the Canada Mortgage and Housing Corporation housing starts fell in May to 189,100 units down from 201,800 units in April. The biggest decreases were seen in the prairie regions where urban starts decreased 21.8%, conversely starts increased 23.3% in Atlantic Canada.
The first half of the year saw builders and buyers trying to beat the July HST deadline in Ontario and British Columbia. As buyers who perhaps would have purchased later in 2010 were motivated to move a few months earlier. An increase in real estate listings has also taken some steam out of housing starts, giving buyers more options. The CMHC still forecasts that overall housing starts will still be up 30% in 2010 over last year.
Toronto and still remains relatively stable as starts were up .9%, mainly fueled by condo and high rise activities. Many analyst expect that the rise in listings and housing starts for the year will play a part in keeping prices more stable for the year.
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