Housing Starts Strong

CMHC Press Release

The Kelowna area new home market recorded another strong performance in October, according to Canada Mortgage and Housing Corporation. October housing starts totaled 240 units, down from 317 units in September.

“Housing starts were expected to drop back following September’s big surge in construction activity,” noted CMHC Market Analyst Paul Fabri. “September housing starts shot up as builders began clearing away the back log caused by this summer's labour dispute among concrete suppliers,” explained Fabri.

The Kelowna new home market remains buoyant despite October’s decline. “Housing starts are on track to reach a thirteen high year in 2004,” he added.

The demand outlook remains positive. The Kelowna area economy and population continue to grow, fueling demand for both new and resale housing. Kelowna is now seeing more broadly based population growth - retirees, “lifestylers” and job seekers. Consumers are upbeat and in the mood to spend. Mortgage interest rates, though beginning to edge up, remain low by historical standards.

Elsewhere, the Kamloops, Vernon and Penticton new home markets, lead by the singles sector, maintained a steady pace in October. Multi-family starts were down, but more typically see bigger swings on a month to month basis.
Year-to-date, housing starts are up sharply in all three centres.

BC also saw housing starts drop in October, the multi-family side accounting for all the decline. Nationally, housing starts dipped five per cent to 225,000 units, seasonally adjusted at annual rates (SAAR) from 237,900 units (SAAR)in September. Ontario, BC and Atlantic Canada all recorded fewer starts. Quebec and the Prairie region posted
small increases.