The London area saw record single-detached housing starts last month, while nationally the number of seasonally adjusted housing starts hit the second highest monthly level in 12 years. In the London Census Metropolitan Area (CMA), 204 single-detached homes were started in October, the most single starts since August 2002, and the best October ever, said Ken Sumnall, senior market analyst with Canada Mortgage and Housing Corp.

The same factors that have produced two years of robust housing starts in the area are behind October's record numbers, said Sumnall: "Strong consumer sentiment bolstered by low mortgage rates and stable employment conditions."

More than ever, October's numbers are indicative of confidence in the economy, he said. "Some builders are getting ready for the winter season by putting in a whole series of foundations," and each counts as a start, he said.

"They wouldn't do that if they weren't confident there was a market for those homes."

Also last month, there were 42 row houses started in the London area, bringing the total starts to 246. Year-to-date in the area, there were 1,611 single starts, compared to 1,694 for the first 10 months of 2002.

Total starts for the year, bolstered by an earlier jump in apartment rental unit starts, is 2,693, up from 2,223 a year ago.

Rennie Pieterman, president of the London Home Builders Association, says every new home represents thousands of dollars in spinoffs in the local economy.

"It's not just a new house, it's all the other things that go with it," said Pieterman.

New home buyers often buy new appliances, new furnishings and new window coverings, she said.

Nationally, Canada Mortgage and Housing said the seasonally adjusted annual rate of housing starts rose to 237,200 in October, up 5,000 from September. It attributed the strong showing to low mortgage rates and strong consumer confidence.

Bob Dugan, chief economist at CMHC's market analysis centre, said the "high activity in the resale market also confirms that demand for home ownership remains strong while creating spill-over demand in the new home market."

Sherry Cooper, chief economist at BMO Nesbitt Burns, said a decline in construction payrolls in October, as reported last week by Statistics Canada, appears to have been "a fluke."

"This solid report offers more evidence that the Canadian economy is getting right back on track in the fourth quarter," Cooper said.