Home starts moving higher

Kelowna area housing starts, led by the single detached home sector, totalled 64 homes in July, according to Canada Mortgage and Housing Corporation.

“Detached home starts have moved higher from the same seven month period in 2009,” says CMHC Market Analyst Paul Fabri.

“Low mortgage interest rates have been a key factor contributing to increased demand for new detached homes. Buyers have also benefited from lower lot prices this year and stronger price competition among builders.”

The inventory of new, completed and unoccupied detached homes has steadily declined since mid 2009, clearing the way for more detached home construction this year.

The uptick in detached home starts is in line with CMHC’s 2010 forecast.

Kamloops and Vernon housing starts were down from levels recorded last July, with fewer multi-family starts offsetting gains in detached home construction.

In Penticton, multi-family construction boosted July housing starts. As in Kelowna, year-to-date detached home construction is up in all three centres.

Nationally, the seasonally adjusted annual rate of total housing starts eased to 189,200 units in July.

In British Columbia, July’s seasonally adjusted rate of urban housing starts moderated slightly to 20,100 units, from 23,500 units in June.