Posts Tagged ‘Affordable’

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October Housing Starts

Comments: 0November 9th, 2009 by admin

Posted by Moishe Alexander

The seasonally adjusted annual rate of housing starts reached 157,300 units in October. This is an increase from 149,300 units started in September, according to Canada Mortgage and Housing Corporation (CMHC).

“The improvement in housing starts in October is attributable to improvement in the multiple starts segment,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Despite a small decline in single home starts in October, the level of single home starts remains at its second highest level since October 2008.”

The seasonally adjusted annual rate of urban starts increased by 5.2 per cent to 139,900 units in October. Urban multiple starts climbed 13.8 per cent to 72,600 units, while urban single starts declined by 2.7 per cent to 67,300 units in October.

October’s seasonally adjusted annual rate of urban starts increased by 15 per cent in British Columbia, by 14.8 per cent in Ontario, by 6.5 per cent in the Prairies and by 1.2 per cent in the Atlantic. The rate of urban starts decreased by 11.6 per cent in Quebec.

Rural starts were estimated at a seasonally adjusted annual rate of 17,400 units in October.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

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Posted in CMHC, Canada

HOUSING MARKET OUTLOOK Ottawa

Comments: 0November 5th, 2009 by admin

Posted by Moishe Alexander

After near record years in new home construction, 2009 residential new home construction will grow below demographic needs in Ottawa Census Metropolitan Area. Total housing starts will close this year at 5,125 units or 27 per cent lower than in 2008 and well below the ten year average for the region. Tight credit conditions for high density development will delay construction in the Capital, particularly for condo apartments. However, increasing strength is expected next year as construction responds to growing demand for housing. In 2010 foundations will rise, growing slightly above population needs with 5,900 new units. Spill-over demand coming from the existing home market combined with low levels of construction this year and declining new home inventories will set the foundations for a strong rebound in New Home construction in the coming year.

Although total starts are expected to soften in 2009, single-detached homes will be declining the least. Single- detached starts will remain at close to 40 per cent of total construction or 2,250 units. The lowest interest rate seen in almost 60 years coupled with more affordable dwellings in Ottawa’s outskirts will result in decreasing monthly mortgage payments.
Single-detached new construction will pick up slightly through 2010. The Monetary and Fiscal stimulus coming from Canada’s Economic Action Plan will further boost the purchase of big ticketed items in the Capital City. Ottawa’s home market continues to be strong, as single-detached starts remain a good barometer of the strength of the new residential construction market.

The average price for new single- detached homes in 2009 will post a similar level of growth to last year and will stand at around $418,400 for a 2.3 per cent increase. Although the underlying increase in price in 2010 will be flat, a greater proportion of more expensive homes will drive the average price higher by 5.7 per cent.

Semi-detached and townhomes will provide an alternative to the single- detached home dwellings when their price increases in 2010. As a result, expect semi-detached and townhomes sales to increase by 10 and 11 per cent next year respectively.

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Posted in CMHC, Canada, affordable housing

HOUSING MARKET OUTLOOK Greater Toronto Area

Comments: 0November 5th, 2009 by admin

Posted by Moishe Alexander

The new home market in the Greater Toronto Area (GTA) will see sales activity rise slightly this year in comparison to 2008. The low-rise housing segment will be credited for the increase in sales in 2009 while the high-rise sector will outperform in terms of sales growth next year. Total new home sales will reach 28,500 units this year and remain steady at 29,000 in 2010 — well below the annual average for the new millennium.

For the first time since 2006, low-rise homes will account for the majority of new home sales in the GTA in 2009 and 2010. New low rise home sales will rise by 37 percent this year to 17,000. Although this level is still well below the high reached in 2002, it represents a complete turnaround from last year when sales dropped by over 40 per cent. Low borrowing costs this year are a clear contributor to the rebound in low-rise sales, as is a lack of supply in the resale market. A rise in new listings in the resale market and a reduction in affordability next year will dampen demand for new single-detached homes in the second half of 2010. Total low-rise home sales will move lower in 2010 to 15,500 units — still above the 2008 level. Strong sales for singles in the first part of next year coupled with stable demand for less-expensive semi-detached and row houses throughout 2010 will provide some support for the low-rise segment.

A tougher selling environment for high-rise homes will lead to a sales decline of 23 percent this year to 11,500 units — the lowest level since 2003. More project launches, an improving employment situation for younger workers and a shift towards lower-priced housing types in the second half of next year will boost new high-rise sales in 2010 by 17 percent to 13,500 units. Construction delays and a heightened sense of uncertainty regarding new condominium projects this year has turned buyers away from pre- construction sales offices. At the same time, less project launches have created fewer new options for buyers. Faced with high levels of inventory relative to demand, developers have begun offering generous buyer incentives and reconfiguring remaining units to attract more sales centre traffic. Sales levels have responded and are now much higher than at the beginning of the year. Still, sales are down by over 40 percent in the year-to-date to August and even with further improvement will register an overall decline in 2009. However, current sales momentum will carry into 2010, leading to a much better performance for 2010.

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Posted in CMHC, Canada, Ontario

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