Canada Mortgage and Housing released their monthly Housing Outlook report today. Last November there were 111 single family homes started in the city of Edmonton, this year the number was 397 – a huge increase. For the year as a whole single family home starts are up by 73% in Edmonton. Of course you have to keep in mind construction was extremely slow in Edmonton in 2008, but builders are certainly ramping up production.
“With both new and resale inventories down substantially from lastfall, builders are ramping up activity in preparation for the springselling season that lies ahead,” noted Richard Goatcher, CMHC’s SeniorMarket Analyst based in Edmonton. “The region’s multi-family builders have now produced back-to-backmonths of over 300 starts, a feat not recorded since May and June of2008,” added Goatcher.
Here are the highlights from the report:
- Total housing starts across Greater Edmonton have increased on a year-over-year basis for the fifth consecutive month.
- In the Greater Edmonton area there were 938 units started in November compared with 279 units in November 2008.
- For the year-to-date, total housing starts have amounted to 5,505 units throughout the Capital region, down from 6,291 units reported during the first 11 months of 2008.
- Single-detached starts in the Edmonton area totalled 605 units in November.
- To the end of November, home builders started work on 3,449 single-detached homes, representing an increase of 43 per cent from the 2,419 units started during January to November 2008.
- Multiple unit starts increased to 333 units in November compared with 55 units in November of last year. Multiple starts have decreased by 47 per cent so far this year to 2,056 units compared with 3,872 multiple units reported after 11 months in 2008.
Are Edmonton home buyers feeling as confident as Edmonton home builders? We'll have to wait and see!
I’m no math wizard, but the numbers
provided for the starts add up
to 357% not 73%. You even refer
to “triple” in the article.
Sorry if that wasn’t clear…. This November is more than 3 times higher than last November, the year as a whole (Jan-Nov 2008 vs Jan-Nov 2009) is up 73%.
It will be interesting to see the price ranges of the new contruction, and whether Builders think there still is a lot of unmet demand at the high end.
mdm… I totally agree… I wish I could get access to those numbers! Last month there was one new home built for $16million in Sherwood Park that threw the averages completely off. Perhaps they will start sharing those stats but I doubt it.
I am considering buying and building as there seems to be better value there then on resale homes. I am considering a spec on a lot that has not had the basement dug yet. I cannot get the showhome peep to give me a price. He says that I have to wait until the basement is dug. Yet they have a for sale sign up on the lot. I would like to have Realtor handle the deal, how does that work, and is it advisable?
Thanks for the tips
T,
You can contact a REALTOR and give them the information and they will check into it and see if they will or can work with that builder. I think its advisable that you at least investigate have your own representation there may be a number of things they are aware of that you are not that could save you some money and grief.
According to one large builder in Edmonton. They are making their largest profit margin ever now that they’be beat down the cost of their trades and residential inventory is low. I’m very surprised you see the value of new homes as better because cmhc estimates the value spread from new to resale as favorable to resale but ultimately you are the one who decides what has value to you.
Value perceived from my point of view: New everything, no renos required. High efficiency furnace, new windows etc. 10 year old homes price out the same, but have old carpets worn furnaces, appliances etc. 20 year old home need windows + much more, though have bigger lots generally. But similar price.
I will contact you soon regarding representation. Does the Builder pay your commission? Do they like doing this?