Housing Starts to Slow

Tuesday, February 05, 2008 04:10 AM

Prince George, B.C. - The lumber industry may take another hit as Canada Mortgage and housing is predicting a slip in national home construction numbers for 2008.

According to CMHC the number of housing starts for 2008 will slip to about 211,700 from the 2007 mark of 228,343.

The increased cost of housing and the resulting higher mortgage carrying costs are being blamed.

The higher mortgage carrying costs are being blamed.

As for sales of existing homes, CMHC predicts the level of MLS^® sales is expected to fall by 3.9 per cent to 499,650 unitsthis year, and that 2009 will see an additional decrease to 488,300.

The predicted decline includes B.C. despite the province's robust economy. B.C.'s housing starts should decline from 39,195 units in 2007 to 33,250 in 2008 and 31,700 in 2009. The average MLS^® price in British Columbia will grow by 12.1 per cent in 2007, 6.0 per cent in 2008 and 5.0 per cent in 2009. This moderation is due to increased listings and fewer resales bringing more balanced supply and demand conditions to existing homes.

Provincial Housing Outlook

Total Housing Starts

2007
Actual
2008
Forecasts
2009
Forecasts
British Columbia
39,195
33,250
31,700
Prince Edward Island
750
700
675
Nova Scotia
4,750
4,550
4,500
New Brunswick
4,242
3,925
3,650
Quebec
48,553
46,500
45,375
Ontario
68,123
69,150
67,150
Manitoba
5,738
5,800
5,900
Saskatchewan
6,007
5,600
5,300
Alberta
48,336
39,500
37,750
Newfoundland and Labrador
2,649
2,650
2,675

National Housing Outlook

Key Housing Market Indicators

	2007 Actual	2008 Forecasts	2009 Forecasts
Total housing starts (units)	228,343	211,700	204,700
Total single-detached houses	118,917	106,300	101,100
Total multiple housing units	109,426	105,400	103,600
Total MLS^® sales¹	519,722	499,650	488,300
Average MLS^® selling price ($)	306,407	322,400	334,500

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Posted on Tuesday, February 05, 2008 04:10 AM in News by 250 News

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Comments

Posted by: The_grandinquisitor on February 5 2008 5:21 AM

Obviously the city doesn't agree with the writing on the wall when it is planning on spending our tax dollars to develop university heights.

Posted by: Bridge on February 5 2008 10:31 AM

"The blind leading the blind"

Cheers

Posted by: drivechain on February 5 2008 11:01 AM

Looks like the Canadian Housing Market will follow the US Market as ussual, what happens south of the border eventually works it's way north.

Posted by: northman on February 5 2008 11:04 AM

Hard to say, wait and see what the election has in store. Once the US gets some confidence back in their govt the economy should pick itself up.

Posted by: Death to Socialism on February 5 2008 2:42 PM

You gotta think a surplus may also be developing.

Posted by: Chester on February 5 2008 8:11 PM

How many residents are being forced to look outside our community for work? Eventually, their families will follow. My question is this; are there more people moving to PG than from PG elsewhere? My experience is that many from the north are being drawn to Alberta to work in the north. While those considering retiring from Alberta are moving into the south of BC. Vernon, Kelowna, Kootneys etc.

So, who is going to be buying all of the new homes being built? Are the developers going to set themselves up to get burned again by getting too greedy? Chester

Posted by: Eagleone on February 6 2008 11:48 AM

Chester your question, IMO, should be who is going to buy all the high end hotel/homes being built.

Its the quality lower priced housing that is lacking in this city and IMO is leading to greater social problems as we build an army of people with nowhere to go wandering around our downtown. Those people can't buy large homes... they can only buy small homes or rent from slum lords, and its those people who our housing strategy should be formed to address.