Despite the Pandemic, Canada’s house constructions were at the peak in March.

Canadian housing starts rose 21.6 percent in March compared to the previous month, comfortably exceeding expectations and setting a new high, according to data released by the Canadian Mortgage and Housing Corporation on Monday.

Housing starts increased to a seasonally adjusted annualized rate of 335,200 units in March, which was above analyst estimates of 250,000 units and a new high for all months on record.

Multiple urban starts, which increased by 33.8 percent to 222,358 units, accounted for much of the increase. Urban single-detached starts increased by 3.6 percent to 78,615 units.

In a statement, Royce Mendes, senior economist at CIBC Economics, said, "The major acceleration came as weather was unseasonably warm in many parts of the world."

Even though building activity has slowed from its "frenzied rate" in recent months, Mendes believes that new home construction will continue to be a major contributor to overall GDP growth in 2021.

According to the Canadian Real Estate Association, the average home selling price in Canada increased by 31.6 percent year over year in March, setting a new high while sales have increased to an all-time high.

The pandemic has been blamed for skyrocketing home prices due to a supply imbalance, but new listings increased in March, which, combined with solid starts, indicates a more balanced market is on the way.