Canada’s overall annual rate of housing starts dropped by 1.6% according to numbers released by CMHC on Tuesday. New home starts were reported to be at 192,300 in June and fell back to 189,200 for July.
However, according to and article in today’s Edmonton Journal, Alberta’s new home starts have actually increased, with Edmonton leading the pack among Alberta’s major centers. In July, builders in the region have begun construction on 6,235 single and multifamily homes which is up significantly from the 2,363 starts in July, 2009. The article does note that 2009 was the slowest year for total overall starts since 2002.
So what the deal is? Is this good news or bad news for Edmonton? Well, CMHC is predicting that although the year started strong with newly built home starts, it will weaken by the end of the year. Apparently, builders still have a fairly low inventory in these parts and have room to add a little more to their store for the fall and winter. This could mean that builders may be more willing to negotiate on price in the fourth quarter if they end up with a bit of a glut in inventory by then.
Also, the resale market has slowed considerably in the last few months and this will put additional pressure on new home builders to remain competitive with their pricing.
Overall, this is more good news for Edmonton home buyers – additional inventory to choose from and competitive pricing.
More questions about whether it’s a good time for you to buy? Contact one of our Mortgage Brokers – we’re happy to help you assess your personal situation as well as the overall market conditions.