Real Estate sales in Victoria BC has been very good over the past year and we expect this to continue. The new housing starts are also remaining very strong. A recent article published in the Times Colonist confirms this. It reads:
National housing starts strong in NovemberBut rising construction costs and labour shortages contributed to a reduction on Vancouver Island
British Columbians started construction on 3,718 new homes in November, which puts the province on pace to add 43,600 units to its housing stock by the end of the year, Canada Mortgage and Housing Corp. reported yesterday. Nationally, the seasonally-adjusted-annual rate of new housing construction reached 227,900 units at the end of November, virtually unchanged from the October estimate of 227,600.“Housing starts remained strong in November and are consistent with our new-home construction forecast for 2007,” said Bob Dugan, CMHC’s chief economist. “The strength in November is attributable to the good performance of single-detached home starts, which reached their highest level since March 2006.”
In November, the seasonally adjusted rate of home construction increased in two of Canada’s five regions, with B.C. recording the biggest increase in urban starts at 16.9 per cent.
In Ontario, the increase in pace was 12.7 per cent.
On Vancouver Island, housing starts slipped in November as builders poured foundations on 350 projects, compared with 422 the previous month.
CMHC senior market analyst Peggy Prill said 2007 housing starts on the Island are eight per cent below last year’s levels, although the 4,145 projects over the last 11 months are still “historically” high. In 2006 after 11 months, contractors had 4,522 housing units under their tool belts.
Prill said rising construction costs, labour shortages and the complexity of many planned multifamily projects has meant delays in projected starts and prolonged construction periods during 2007.
Nanaimo is the only Island region to show increases in building this year with 749 housing starts to the end of November, compared with 663 over the same period a year ago. The Harbour City also showed the largest increase in November with 85 starts compared with October’s 56.
Greater Victoria began construction on 2,334 homes, condominium units and apartment suites so far this year, 253 fewer than at the end of November 2006.
New housing slipped in the region from 282 starts in October to 174 in November. Saanich was the leading area with 66 starts — a total that included 38 apartment suites. Victoria had 36 units built, including 23 apartment suites. The leading regions for single-family homes were Sooke, with 15 built during November, and Langford, which added 14.
Courtenay builders have put up 599 housing units so far in 2007, down 28 from 2006. Although Parksville-Qualicum recorded 31 new starts in November, up from 17 in October, the region’s pace has slowed considerably in 2007, with only 205 homes built compared with 329 through 11 months of 2006.
Duncan also had a slower pace with 21 starts in November, five fewer than the previous months, and 258 so far this year, down from the 316 underway over the same period a year ago.
Nationally, the seasonally adjusted annual rate of housing starts in urban areas rose 0.2 per cent last month from October, with single units up 12.8 per cent to 95,400.
Multiple-unit starts fell 9.8 per cent to 96,600 units, CMHC said.
Urban single starts were up in all regions except the Prairies. Only the Atlantic region and British Columbia saw increases in urban multiple starts.
CMHC said housing starts in rural areas totalled 35,900 units in November.
On a non-adjusted basis, combined rural and urban starts were up 2.7 per cent in the first 11 months of 2007 from the same period last year, it said.
Actual starts in urban areas rose 0.1 per cent for the year. Urban single-unit starts fell 4.2 per cent from the same 11-month period in 2006, while multiple starts rose 4.2 per cent.
“Overall, the Canadian housing sector continues to outperform expectations, and is in stark contrast to its U.S counterpart where the recession in housing sector continues unabated,” said Millan Mulraine, economics strategist at TD Securities.
“We continue to expect the Canadian housing market to remain reasonably strong, though some moderation in the first half of next year should be expected.” End of Article.
For those of you that are interested in what the home prices have done in British Columbia (BC) in general you can check out British Columbia Real Estate Association’s (BCREA) Residential Average Price, Active Listings and Sale-to-Active-Listings Data. This gives you a pretty good insight to the Real Estate Market in different parts of BC.
If you have any comments or thoughts on the above, just drop us a note below. If you have questions about Victoria Real Estate in general, you can contact us anytime.
Anders Treiberg, Associate Broker, REALTOR®
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