Housing starts off 92 per cent in 2009
A slump in the multi-family development market has contributed to a major slide in new home construction in the Central Okanagan.
April figures provided by Canada Mortgage and Housing Corporation show housing starts in Kelowna fell 88% compared to the same month in 2008.
Last month, housing starts totaled 29 single detached homes. In April of 2008, 80 single detached and 169 multi-family homes were started.
Over the first four months of the year, housing starts in the Central Okanagan are off 92% from the first four months of 2008.
So far, 101 housing starts have been recorded in 2009, compared to more than 1,200 a year ago.
"Reduced demand in combination with rising inventories of completed and unsold new home have led to fewer housing starts this year," says CMHC Markey Analyst, Paul Fabri.
"Builders are also facing much stronger price competition from a well supplied existing home market. Looking ahead, expect Kelowna new home construction to moderate from the record levels of the past few years."
Fabri says home buyers can continue to expect to see lower prices, favourable interest rates and a good selection of new and existing homes in 2009.
Across the region, housing starts in Penticton over the first four months of 2009 fell off 64%, Vernon 45% and Kamloops 42%.
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