Canada Mortgage and Housing Corporation (CMHC) released their monthly "Housing Now" report on new home construction in Edmonton today. For the fourth month in a row new starts in Edmonton increased year-over-year in October. Here are the highlights:
- Housing starts in the Edmonton area totalled 947 units in October compared with 699 units in September and 612 units in October 2008.
- Overall starts this year still trail production reported in the first ten months of 2008 by 24%, but single family home starts are up by 30%.
- Construction began on 598 single family homes in October (compared to 481 in September), representing a substantial gain over the 223 units started in October 2008. This was the best October performance since 2006.
- Multi-unit starts decreased in October by 10.3% year-over-year to 349 units, but increased over last month (218 units). Multiple starts have fallen by 55% on a year-to-date basis.
CMHC Markey Analyst Regine Durand noted: “Builders across the Capital region are looking to replenish inventories for the important spring selling season ahead. Concerns over the elevated supply of condominium apartments in Edmonton will keep multi-unit starts at low levels for the balance of 2009.”
Housing starts across Alberta’s seven largest were up 29.5% from October 2008.
Builders near me are just putting up spec homes and skimping on things to get it done cheaper. That sounds like a recipe to have another glut of houses on the market next spring. AND since they are building them for less $$ by not only cutting corners but also cheaper trades, you’d assume builders will dump them for cheaper than houses built 1-2 years ago. To me that spells another major price slide. Maybe I’m wrong, but it seems like home builders are trying to make some $$ again, and will probably drive down home prices in the process. But why would they care if they can start moving houses again.
The existing-homes market is in short supply so we’ve gone from a buyers market
to sellers market. It is either one or the other. Boom or Bust, it just a matter
of knowing which market we are in and understanding the benefits and consequences of that market.