Penticton area housing starts for the first half of the year totalled 34, which is down from 104 for the same period one year ago, according to Canada Mortgage and Housing Corporation.
Both the detached home and multi-family sectors recorded fewer housing starts during this period, in Penticton there were 26 single-detached homes built in the first half of 2009, versus 39 in 2008. On the multi-family resident side there were eight projects versus 65 in the previous year. Overall, that made for a decline of 67 per cent.
“Builders continue to face strong price competition from a well supplied existing home market,” explained CMHC Market Analyst Paul Fabri. “Rising inventories of new, completed and unoccupied homes have also contributed to fewer housing starts this year.”
While comparisons for the first half of the year are less than stellar, starts for the month of June alone aren’t dismal and Penticton maintained the status quo of five starts year over year.
All in all, the situation is much the same across the province.
“Slower employment growth translates to less demand for housing,” explained Fabri, noting that markets are cyclical.
“We have seen downturns in the past. In the Okanagan, there was one in the early ‘80s, one in the mid ‘90s, so I do anticipate that we will see some improvements.”
There’s already been a bit of improvement in the area of existing home stock, and that improvement will eventually play out in the new home construction market. Read More