After Effects Of Concrete Strike

Kelowna area housing starts dropped off sharply in August, declining for the second straight month, according to Canada Mortgage and Housing Corporation (CMHC).

August housing starts totalled only 66 units, down from 112 units in July and 262 units the previous month.

“A labour dispute among local concrete suppliers accounted for most of the decline,” says CMHC Market Analyst Paul Fabri.

“The disruption in supply has caused big delays, pushing down housing starts by an estimated 75 single detached units and at least three multi-family projects since mid-July. With the dispute now settled and concrete beginning to flow again, expect housing starts to spike back up in September and October,” noted Fabri.

Despite the setback, Fabri says the demand outlook remains positive.

"BC is poised to see stronger economic and population growth this year and next. Consumers are upbeat. Low mortgage interest rates remain a key driver. Closer to home, the Kelowna area economy and population continue to grow, fueling demand for both new and resale homes."

Elsewhere, the Kamloops, Vernon and Penticton area new home markets posted another strong performance in August. Year-to-date, housing starts are up sharply in all three centres.

BC housing starts, lead by the Vancouver area condominium market, surged ahead in August. Nationally, housing starts jumped ten per cent to 241,500 units, seasonally adjusted at annual rates (SAAR) from 218,600 units (SAAR)
in July . All regions except Quebec saw an increase.

More Business News