Region set to show best building performance since 1994
Ashley Ford
Province
There just ain’t no stopping the vibrant residential construction market in Greater Vancouver.
Latest numbers released by Canada Mortgage and Housing Corp. Friday show the region enjoyed its best building performance since 1994.
With commodity prices roaring along, job growth continuing and seemingly few economic problems on the horizon, the Lower Mainland house-construction market is set to be the best performer in Canada this year.
Lower Mainland housing starts in the first quarter were 4,112, a 11.2-per-cent climb from last year. March numbers at 1,550 were 51.2 per cent higher than March 2004.
CMHC’s latest numbers show the Vancouver market continuing to storm ahead. CMHC had earlier projected 20,000 housing starts for the region and they are certainly on pace to at least equal, or exceed that number.
Cameron Muir senior market analyst for CMHC in Vancouver said “the pent-up consumer demand that drove the Vancouver housing market over the last three years is now giving way to much stronger market fundamentals. Expanding net migration, increasing job growth and rising wages are now fuelling housing demand,” he said.
“In fact, today’s economic conditions point to a housing market that is far more robust and sustainable than at any time during the last decade,” he said.
“There are many indicators this robust market will continue,” Peter Simpson, chief executive officer of the Greater Vancouver Home Builders’ Association said in an interview.
“At our most recent seminar for first-time homebuyers more than 800 young people attended, which demonstrates the depth and confidence in market.”
Mortgage rates are still low and this spring a lot more projects will be introduced to the marketplace across the market giving buyers a choice of many types of housing from high to entry-level priced housing, he said,
“It seems that with spring upon it appears very clear that people are prepared to put down roots and buy houses,” he said.
Despite all of this activity, there is still a tight supply of new housing available, he added.
CMHC said that housing starts in Canadian hit a seasonally adjusted annual rate of 218,500 in March, up from 217,800 in February.
TD Bank economist Carl Gomez said the strength in the housing market in Western Canada reflects the region’s economic growth.
“Economic conditions are definitely shifting to Western Canada,” Gomez said.
© The Vancouver Province 2005
