{"id":3941,"date":"2016-11-09T10:10:36","date_gmt":"2016-11-09T18:10:36","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=3941"},"modified":"2016-11-08T19:10:11","modified_gmt":"2016-11-09T03:10:11","slug":"vancouver-leads-decline-in-new-home-construction-in-october","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2016\/11\/vancouver-leads-decline-in-new-home-construction-in-october\/","title":{"rendered":"Vancouver Leads Decline in New Home Construction in October"},"content":{"rendered":"<p style=\"text-align: justify;\">The Vancouver region, already facing a massive decline in activity of resale homes, is now facing a slowdown in new home construction.<\/p>\n<p style=\"text-align: justify;\">Canada Mortgage and Housing Corp. statistics out Tuesday for housing starts show the British Columbia market numbers falling fast, a development that comes in the wake of new mortgage financing rules from Ottawa that went into effect Oct. 17 and a new foreign property transfer tax of 15% that came into play Aug. 2.<\/p>\n<p style=\"text-align: justify;\">\u201cBritish Columbia is the big story, with starts falling sharply to 27,600 (on a seasonality adjusted annualized basis) after pushing record levels, north of 50,000 at one point, earlier in the year. October\u2019s tally brings activity back down to the very stable, and fundamentally supported, range seen between 2010 and mid-2015, before activity broke out to the upside,\u201d Robert Kavcic, senior economist with Bank of Montreal.\u201d<\/p>\n<p style=\"text-align: justify;\">\u201cWe\u2019ll see if this level of activity, particularly in Vancouver where starts fell to the lowest since 2011, holds in the months ahead in response to softening demand conditions.\u201d<\/p>\n<p style=\"text-align: justify;\">For the country, the Crown corporation said it\u2019s six-month trend for housing nationally was 199,920 units on October on a seasonally adjusted annualized basis, up from 199,262. The stand-alone number for October was 192,928 units, down from 219,363 units in September.<\/p>\n<p style=\"text-align: justify;\">\u201cIn October, housing starts remained stable, as the trend remained essentially unchanged from September,\u201d said Bob Dugan, chief economist with CMHC. \u201cWhile apartment starts are on a downward trend in British Columbia after reaching an all-time high at the beginning of the year, increased construction of single, semi-detached and row units in the rest of the country have helped offset the decline.\u201d<\/p>\n<p style=\"text-align: justify;\">The CMHC news comes on the same day Statistics Canada said municipalities issued $6.9 billion worth of building permits in September, down seven per cent from August.<\/p>\n<p style=\"text-align: justify;\">Quebec, British Columbia and Ontario recorded the largest declines. The overall decrease was attributable to lower construction intentions for non-residential buildings. In the residential sector, the value of permits\u00a0 increased for a second straight month, up 2.6% from August to $4.6 billion in September.<\/p>\n<p style=\"text-align: justify;\">Dina Ignjatovic, an economist with Toronto-Dominion Bank, said given the state of demographics she doesn\u2019t believe housing starts can maintain their present pace.<\/p>\n<p style=\"text-align: justify;\">\u201cThe new mortgage and tax regulations recently introduced by the federal government is expected to take some steam out of home sales, particularly in BC and Ontario which have accounted for the bulk of the gains so far this year. This should filter through to home building activity as well. Indeed, following strong growth this year, we expect housing starts in B.C. and Ontario to record sizable declines next year,\u201d said Ignjatovic.<\/p>\n<p style=\"text-align: justify;\">Nathan Janzen, a senior economist with Royal Bank of Canada, also expects some of the changes in legislation to have an impact on the housing market.<\/p>\n<p style=\"text-align: justify;\">\u201cWe expect overstretched affordability conditions in some markets will ultimately restrain home resale demand while recent policy actions designed to dampen housing demand at the federal level will likely weigh on sales activity across all provinces,\u201d said said Janzen.<\/p>\n<p style=\"text-align: justify;\">\u201cWe expect some slowing in resales will ultimately also be reflected in lower new construction activity and look for housing starts to moderate further with the new policy backdrop implying, in our view, some downside risk to the 181K starts next year in our latest forecast.\u201d<\/p>\n<p><a href=\"http:\/\/business.financialpost.com\/personal-finance\/mortgages-real-estate\/vancouver-leads-declines-in-new-home-construction-in-october-cmhc\" target=\"_blank\">CMHC : Vancouver Leads Decline in New Home Construction in October<\/a> by Garry Marr | Financial Post<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Vancouver region, already facing a massive decline in activity of resale homes, is now facing a slowdown in new home construction. Canada Mortgage and Housing Corp. statistics out Tuesday &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2016\/11\/vancouver-leads-decline-in-new-home-construction-in-october\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-3941","post","type-post","status-publish","format-standard","hentry","category-market-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Vancouver Leads Decline in New Home Construction in October &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2016\/11\/vancouver-leads-decline-in-new-home-construction-in-october\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Vancouver Leads Decline in New Home Construction in October &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"The Vancouver region, already facing a massive decline in activity of resale homes, is now facing a slowdown in new home construction. 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