WASHINGTON - U.S. builders began construction on more single-family homes and apartments in May, encouraged by more buyers and a scarcity of houses for sale. The overall pace of homes started rose 6.8 per cent last month to a seasonally adjusted annual rate of 914,000, the Commerce Department said Tuesday. That followed a 14.8 per cent decline in April. May's rate is still below March's pace of more than 1 million — the highest in five years.

For the first time in seven years, most U.S. homebuilders are optimistic about home sales, a sign that construction could help drive stronger economic growth in coming months. The National Association of Home Builders/Wells Fargo builder sentiment index released Monday leaped to 52 this month from 44 in May. It was the largest monthly increase since 2002. A reading above 50 indicates more builders view sales conditions as good, rather than poor. The index hasn't been that high since April 2006, just before the housing market collapsed.

OTTAWA - Home construction in Canada staged a surprising spring resurgence in May, particularly in the seemingly overbuilt condominium market, defying expectations of a slowdown and even deep correction. The latest housing starts data from Canada Mortgage and Housing Corp. showed building rose to an annualized 200,178 units last month — with condos leading the way — about 20,000 over economists' expectations and almost 25,000 above the April number.

TORONTO - Housing prices in Canada have been relatively flat so far this year but there's a "downside risk" going forward, particularly in the country's largest city, according to a Scotiabank report issued Friday. "Toronto’s housing market is correcting in the wake of affordability pressures, inventory build, changes to mortgage insurance rules and more cautious lending policies," writes Scotiabank economist Adrienne Warren.