Single-Family Housing Pace Slowing
Posted Oct 19, 2007 @ 9:57 am, Viewed by 342 Visitors, Read 354 Times.
CREB Talk, October 19 - Sagging construction will force builders in Calgary to review their year-end estimates, says an industry official. “We were originally budgeted to do more than 600 homes, but we’ll likely have to reduce that by about 100,” says Shane Wenzel, senior vice-president of sales and marketing for Shane Homes. “I think a lot of the others will have to take another look at their numbers.” September was another slow month for single-family builders, says. Work started on 697 homes, down more than 18 per cent from the 854 started in the same month a year ago. The 6,114 starts recorded for the first nine months of this year are well off last year’s record pace of 8,304.
“Single-detached starts during the last three months of this year are expected to be below the performance of the fourth quarter of last year,” says Lai Sing Louie, senior market analyst for CMHC. “However, the gap between this year and last year’s production is expected to narrow and be under 25 per cent by year-end.” While activity in the detached market has slowed, the same can’t be said for the multi-family market. In September, starts totaled 689units, almost 275 per cent more than the 184 starts of a year ago - the result of high numbers of semi-detached, townhouses and apartments.
“The combined total of multi-family starts reached the second highest-level for a September in recent history,” says Louie. “Outside of 2005, you would have to go back to the early 1980s to see a higher level of production.” With three quarters of the year completed, multi-family starts total 4,690, less than one per cent off last year’s total of 4,735. But because of the weakness in the single-family housing sector, starts of all kinds are running 17 per cent behind the same nine-month period in 2006 - 10,804 this year compared with 13,039 a year ago.
Provincially, starts in Alberta’s seven largest centers totaled 4,134in September, more than 33 per cent higher than the previous year. Nationally, urban starts last month totaled 22,031, an increase of 44 per cent from a year earlier.
Provincially, starts in Alberta’s seven largest centers totaled 4,134in September, more than 33 per cent higher than the previous year. Nationally, urban starts last month totaled 22,031, an increase of 44 per cent from a year earlier.
Marty Hope Calgary Herald
Posted by www.JoeSamson.com
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