One contributing factor to the lower levels of inventory on the market may be the drastic amount that new construction has been scaled back compared to last year. However, there are still many multi-family projects that began last year that are still under construction.
Below are some highlights taken from the April 2009 CMHC Housing Now Report
- Through the 1st Qtr 2009, total housing starts have reached 746 units, close to 4,000 units lower than year-to-date production in 2008. (March 2008: 3068 Units, March 2009: 297 Units)
- Under 5% of the SFH under construction in March were speculative. Last year, that was closer to 14%
- Multi-family starts are down 95% (March 2008: 2652, March 2009: 126)
- Multi-family units under construction is 7,807, down 31% from a year earlier but still elevated from a historical perspective.
- The months of supply, defined as active listings divided by sales, was at 5 in March down from about 9 in January.
- The sales-to-new listing ratio was at 47% in March, almost doubling from the level in January. Granted, January’s sales levels were very low, but this is offset by the decrease in available inventory. New listings were down 31%, 29%, and 39% in January-March, respectively.
The report also references the economy, net migration, and prices. Again, you can read the full 26 page report here
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Mike Fotiou, First Place Realty, is a licenced Realtor, Certified Condominium Specialist, Accredited Buyer’s Representative and Commissioner for Oaths in the Province of Alberta.
If you’re thinking of buying or selling real estate, or have any questions, please feel free to contact me by phone or email.
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