Langley Real Estate

New-home construction activity in Greater Vancouver continued its gentle cooling down last month, according to the latest numbers from Canada Mortgage and Housing Corp. released yesterday.

But housing experts say there is little to worry about. The sector remains strong and there is fierce competition for skilled labour.

"Yes, there is moderation in the market, but we knew this was going to happen," said Peter Simpson, CEO of the Greater Vancouver Homebuilders Association.

"This year we are not going to see any large spikes or drops and will end up about where we were last year." Simpson said building-permit numbers continue to rise and that augurs well for a continuing, strong but steady performance.

CMHC preliminary figures show that Greater Vancouver housing starts fell 22 per cent in the first four months of 2007, to 5,757 units, from the same period last year.

Single-detached starts declined by 40 per cent, to 1,214 units, while multiple-unit starts dipped 15 per cent, to 4,543 units.

"Although new construction and resale-market activity are moderating, homebuyer demand remains strong," said Robyn Adamache, senior market analyst with CMHC.

"With unabsorbed new-home inventory levels still at historic lows, and demand solid, look for starts to end the year at near the same level as 2006," Adamache said.

Also, multiple-unit projects, which account for the majority of new residential construction, are taking longer to complete due to labour shortages, keeping the number of units under construction high.

Year-to-date, housing starts in B.C.'s urban areas contracted 11 per cent to 10,091 units, compared to the same period a year ago.

© The Vancouver Province 2007

 

The Schacter Team - Langley Real Estate