Economists baffled at Canada's condo boom

A November surge in everything from semi-detached homes to condos has brought the number of housing starts over the past 12 months to the highest on record in data going back to 1959, according to figures released late last week by the Canada Mortgage and Housing Corporation. The jump surprised policy makers and analysts particularly given the softening that has taken place in the Toronto resale market, the country’s largest, in recent months. “Canadian home building activity remains rock solid,” BMO Capital Markets economist Robert Kavcic wrote in a note to investors, as quoted by Bloomberg. “Builders in the biggest cities appear to be responding to supply shortages as best as possible.”

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