Kelowna Housing Starts Down

Kelowna area housing starts were down in May, according to Canada Mortgage and Housing Corporation. May housing starts fell to 142 units from 549 units in April. Fewer multi-family starts accounted for most of the decline.

"Housing starts were expected to drop back following April's big surge in multi-family construction," noted CMHC Market Analyst Paul Fabri. "April housing starts shot up to the second highest monthly level ever," explained Fabri. "Multi-family starts typically see big swings on a month to month basis," he added. The singles sector maintained a steady pace in May.

The Kelowna new home market remains buoyant despite May's decline. The demand outlook is positive. Kelowna's economy continues to expand. Strong employment growth has spurred in-migration, fueling demand for new and resale housing. Retirees and others seeking resort-oriented housing also remain key sources of demand.

Elsewhere, Kamloops starts, lead by the multi-family sector, reached an eight year high in May. Penticton starts were also up sharply. Construction began on two condominium projects, boosting starts to the highest level since September 1996. The Vernon new home market recorded another strong performance in May. Housing starts in all three centres have jumped up 30-40% over the same five month period last year.

Nationally, housing starts fell five per cent to 218,800 units, seasonally adjusted at annual rates (SAAR), from 230,400 units (SAAR) in April. Quebec and Ontario recorded the biggest drop in activity.