Quote:
Originally Posted by comadriver
Found it. I guess we built a whole bunch of townhomes this year.
Detached
2007: 124
2008: 155
Others
2007: 148
2008: 307
TOTAL Starts
2007: 272
2008: 462
Ontario is up 23%, Hamilton is up 70% this month over Oct 2007. The overall January-to-October increase in Hamilton is a more moderate 21% over 2007. The western provinces are way down in double digits. This is becoming an interesting phenomenon: resales are down, average prices are down, interest rates are down and housing starts are waaay up and taking off even more. I can't get my head around this just yet.
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I believe this is what indicates the begining of a real estate bubble. A sharp drop in demand for housing while the housing supply continues to increase creating a glut of houses on the market.
It will take a while for builders to adjust for this new rate of demand, in the mean time they will keep building and brand new houses will sit for months waiting for buyers.
The larger markets out west have already burst their bubbles, and i think the Toronto market just burst this summer. Hopefuly Hamilton/Burlington development companies can scale back production quickly, since it's coming into winter and production would be scaled back anyways the timing could work out well for our area.