The Canadian Mortgage and Housing Corporation (CMHC) released their Housing Now report on new home construction in Edmonton last week. Construction of single family homes in the Edmonton area significantly increased again in September:
To me that means Edmonton area home builders are feeling increasingly confident in the market in Edmonton. The question is – are they over confident?
Other highlights from the report:
- Housing starts totalled 699 units in September compared with 428 units in September 2008.
- Total housing starts have amounted to 3,620 units so far this year, down one third from 5,400 units reported during the first nine months of 2008.
- Single-detached starts in the Capital region totalled 481units in September, more than double the 235 units tallied in '08 – the best month for builders since October 2007.
- Median price $476,900, down 4.6% on a year-over-year basis (compared to $349,900 on the resale market).
- Apartment activity has seen the greatest retrenchment, falling by 83% from the first nine months of 2008.
- Multiple unit rose by 13% in September to 218 units compared with 193 starts last year (the first gain since May '08). So far this year, multiple dwelling starts have declined by 60% to 1,374 units, down from 3,428 multiple units reported from January to September '08.
- Multiple unit completions in September experienced sizable gains over the same month last year (second month in a row) reaching 805 units compared with 542 in September 2008.
- Inventories – condos 1,222 units the highest level since June 2005, single families 474 the lowest level since July 2007.
- Labour: The unemployment rate hit its highest rate since March 1997 in September – 7.4%. Most of this increase was do to an increase in the work force because peopler are moving here for work (our economy is weakened but not as much as many other areas in the country). Average weekly earnings were up 5.2% on a year-to-date basis to the end of September.
I was planning on having the monthly stats up today, but there was another glitch in the stats put out by the REALTORS® Association of Edmonton so we'll have to wait until that is sorted out. As always our subscribers will receive extra analysis (such as why are new homes so much more expensive than resale?) and stats shortly after the monthly number are posted. Don't miss out – subscribe today!
It would be intersting if someone could track how many new homebuilding companies have popped up in light of the recent downturn.
Sure, some may have closed their doors or scaled back, but I know of a few companies that have popped up.
In times like these, Land Developers with excessive lot inventory with no housing starts are prone to start up or finance another home building arm, or open their otherwise “Closed Subdivisions” to smaller homebuilding companies, that otherwise wouldnt have the clout to do so.
Thomson Built homes is one example – entering Ambleside.
I kind of fit into that category. I’m a carpenter building my own home right now. During the boom, the only entity that would sell you land to build on was the city of Edmonton if you were a small build to order company. All the other developers required that anyone who would build homes in their subdivisions would have to build a showhome. That squeezed out a lot of even the medium sized companies from some of the areas. Now with all the excess lots that have been serviced, lying fallow, the builders have stopped being picky about who builds where and will sell to anyone with cash. Little 1 to four homes a year builders might be who some of these companies are that are popping up…guys who built pre-boom to earn a living and got squeezed out for lack of land during the boom. Near where I live one subdivision called Lucas Estates 2 went into foreclosure this passed summer and the lots are being sold off by court order. I’ve only seen one house built so far though, so I’m not sure their is much interest.