Housing starts up in February

Construction began on 44 homes in February, up more than 30 homes from the same time in 2009.

The Canada Mortgage and Housing Corporation says only 11 homes were built in February last year.

“New home construction, led by the detached home sector, has picked up from the very low levels recorded early last year,” says CMHC Market Analyst Paul Fabri.

“Lower lot prices and construction costs have allowed builders to compete more effectively with existing homes.”

Fabri says detached home construction is expected to move higher in
2010, but condominium construction will remain at a minimum thanks to a large supply of new, completed, unoccupied units.

Vernon and Penticton housing starts were also up in February. As in Kelowna, the detached home sector was the focus of new home construction.

Nationally, February housing starts increased to 196,700 units, seasonally adjusted at annual rates (SAAR), from 185,400 units SAAR in January. Starts were up across Canada except in Quebec.

In urban B.C., housing starts rose to 26,900 units SAAR in January from 24,900 units SAAR the previous month.