A rise in multi-family construction -- primarily condominiums -- pushed housing starts in BC higher in July, reports the BC Central One Credit Union.
Total housing starts in the province rose to a seasonally-adjusted annualized rate of 30,000 units, up 29 per cent from June and 33 per cent above July 2010. Despite the large month-to-month gain, new home activity has been highly volatile since early 2010, fluctuating around an average of 26,400 units.
Housing starts in Metro Vancouver lagged the provincial performance in July, rising 16 per cent to an annualized rate of 18,200 units.
In all BC's urban areas, multi-family starts rose 48 per cent from June to reach an annualized rate of 20,800 units, while single-detached starts increased just 4 per cent to 7,400 units. Although total housing starts have been volatile, recent activity suggests that single-detached starts troughed in early 2011 following a year-long downtrend and are now on a modest upward trend.
Meanwhile, the underlying trend in the volatile multifamily sector continues to point higher.
Total annual provincial housing starts this year are expected to remain close to 2010 levels, but fall short by 3 per cent, due to weaker activity earlier this year. However the underlying trend will be positive and continue to rise through 2013. Near-term growth could be limited by the recent dampening in housing demand, reflected in declining sales of existing homes, according to Central economist Brian Yu.
