Housing starts in Canada are up in February, the Canada Mortgage and Housing Corp. reported Monday, while a new study also suggests more Canadians are considering buying a new home within the next two years.

The seasonally adjusted annual rate of housing starts reached 196, 700 in February, compared to 85,400 in January 2010.

Urban housing starts increased nine per cent to 179,100 units in February.

The rate of urban starts was highest in Ontario, followed by Atlantic Canada, the Prairie provinces and British Columbia. Quebec was the only region where urban starts fell.

Meanwhile, ten per cent of those polled in the 17th annual RBC home ownership study said they planned to buy a home by 2012. That's compared to 7 per cent of those polled two years ago.

The study says 15 per cent of those polled in the 18-24 demographic said they want to buy a home by 2012, nearly double the rate from the 2009 survey.

The poll, conducted by Ipsos Reid, also found that 91 per cent of Canadian homeowners say that owning a home is a good investment, the highest level in 12 years.

"With the Canadian housing market showing continued vigour, it's not surprising that Canadians feel more confident in the long-term value of owning a home," RBC senior economist Robert Hogue said.

"Exceptionally low mortgage rates and improved affordability have been key reasons for the resurgence in the housing market this past year."

Some key findings in the poll:

  • 91 per cent of those surveyed believe buying a home is a good investment
  • 42 per cent believe it is a buyer's market
  • 64 per cent think mortgage rates will be higher next year
  • 68 per cent currently own a home

The study also found that 44 per cent of those intending to buy a new home within two years plan to take a fixed rate mortgage, while 40 per cent planned to take a combination mortgage with both a variable and fixed rate component.

For those intending to take a fixed rate or combination mortgage, seven out of ten of those polled said they plan to take a term of five years or longer. Only 16 per cent said they planned to take a variable rate mortgage, down from 20 per cent in the 2009 poll.

"Canadians seem to be opting for more caution this year and may be factoring in potential rate increases down the road," Marcia Moffat, RBC's head of home equity financing, said "Choosing a combination mortgage can take some of the guesswork out of making a decision between whether it is better to lock in to a longer-term or stay in a variable rate."

Six out of ten Canadians polled said they believed housing prices will rise in 2010. Only 25 per cent said so in 2009.

Regional, Albertans were the most likely to say they were buying a home within the next two years.

Those intending to buy a home within two years:

  • nationally -- 10 per cent
  • Alberta -- 13 per cent
  • Atlantic provinces -- 11 per cent
  • Ontario -- 10 percent
  • Quebec – 9 per cent
  • British Columbia – 9 per cent
  • Manitoba, Saskatchewan – 8 per cent