Like flowers blooming in the spring, the Canadian countryside has seen a veritable bouquet of new houses pop up in the last month. The Canadian Mortgage and Housing Corporation recently announced housing starts in April hit 244,900, far surpassing most analysts' expectations.
The seasonally adjusted numbers were up 14 percent from March, and roughly 20 percent above industry experts' predictions. A Bloomberg sampling showed most Canadian real estate experts anticipated there would be 204,000 starts in April. Just 67,700 of the starts were single-family detached homes.
“Most of the increase was in the multiples segment,” said Mathieu Laberge, deputy chief economist at CMHC’s Market Analysis Centre. "The increase in this segment is partly a reflection of the high level of pre-sales in large multi-unit projects since 2011, which is in line with job gains over the last year."
Canadians considering taking out a mortgage for a new home should be sure they are prepared for the financial responsibilities of their home loans. BMO Financial Group recommends stress-testing household budgets to determine how much potential homebuyers can afford. This could be done using an online mortgage calculator. Consulting with a mortgage broker is another good way to get all the information needed to make a decision on a new home.