London’s July home-construction market was stronger than it’s been in 10 years for that month

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London’s home-building boom continued in July with single-family homes leading the way to a 10-year high.

The market was led by 197 single-detached starts, which Canada Mortgage and Housing Corporation (CMHC) noted was the highest level for the month in 10 years.

There were 38 multi-family starts, down slightly from 41 in July 2016. Single-detached starts are considered a more reliable market indicator than the volatile multi-family market.

The CMHC figures show London’s home-construction market is getting a major boost from the resale market, which is racking up record sales this year, especially in high-end homes worth more than $500,000.

“The price gap between single-detached homes in London and comparable homes in Toronto has continued to remain wide, making London an attractive destination for buyers from the Greater Toronto Area,” CMHC officials wrote in a press release.

Across Canada the CMHC’s annualized estimate of housing starts rose to 222,300 in July, the second-strongest reading of the past year.

Ontario starts rose slightly to 79,200, with a year-to-date average of 80,000. BMO economist Robert Kavcic said it is one of the strongest housing construction markets in 20 years with multi-family starts dominating.

“Canadian homebuilding activity remains robust, supported by a spurt in population growth,” said Kavcic.

London area July housing starts

(2016 in brackets)

Single-detached 197 (138)

Multi-family 38 (41)

Year to date

Single-detached 997 (784)

Multi-family 1,186 (915)

Total 2,183 (1,699) 

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