Housing Starts Rebound
AFTER TWO CONSECUTIVE MONTHLY INCREASE, SEASONALLY ADJUSTD HOUSING STARTS IN B.C. DROPPED 7.4 PER CENT IN OCTOBER TO AN ANNUALIZED PACE OF 27,500 UNITS REPORTED BY VANCOUVE SUN PAPER.
October's decline was led by weaker starts in urban areas, where starts fell nine per cent from September, reflecting an 11-per-cent drop in the multiple-family market and a 4.9-per-cent pullback in single-detached housing.
Despite the significant decline last month, the upward, but uneven, post-recession trend in multiple-family starts continues. In contrast, single-detached starts are extending a declining trend that began in early 2010.
HOUSING starts are forecast to trend higher in 2011, particularly in the multiple-family sector. LOW MORTGAGE RATES ALONG WITH HIGHER EMPLOYMENT, POPULATION AND INCOMES ARE EXPECTED TO PUSH THE RESALE HOUSING DEMAND HIGHER, WHICH WILL DRIVE UP HOUSING CONSTRUCTION. STARTS ARE FORCAST TO RISE 6.4 PER CENTIN 2011 TO 27,600 UNITS AND A FURTHER 14 PER CENT IN 2012.