Housing starts in Red Deer fall in August

Canada Mortgage and Housing Corp. reported on Tuesday that housing starts in Red Deer dipped last month, as compared with the same period in 2013.

Canada Mortgage and Housing Corp. reported on Tuesday that housing starts in Red Deer dipped last month, as compared with the same period in 2013.

The national housing agency said work began on 43 homes in the city in August, which was down 38 per cent from the 69 starts a year earlier. Last month’s total included 35 single-detached homes and eight units in multi-family projects; in August 2013 the corresponding numbers were 33 and 36.

From January to August inclusive, Red Deer builders have combined for 564 housing starts: 257 in the single-family and 307 in the multi-family categories. That tally was nine per cent higher than for the same eight-month period in 2013, when there were 265 single-detached starts and 254 multi-family starts, for a total of 519.

Among Alberta’s major cities, the pace of construction this year is up in Calgary, Lethbridge, Medicine Hat and Red Deer, but down in Edmonton, Grande Prairie and the Regional Municipality of Wood Buffalo.

Canada-wide, the annual rate of housing starts slowed in August, according to the CMHC.

“The Bank of Canada may be looking for a rotation away from housing and the consumer, but low rates continue to support residential investment,” said CIBC economist Nick Exarhos in a report.

“But despite recent resiliency, we still expect housing’s contribution to growth to slowly wane as we progress through this business cycle, with affordability concerns and a weak labour market putting pressure on the building sector going forward,” he said.

The federal agency said Tuesday that the seasonally adjusted annual rate of urban starts fell in August. Multiple urban starts and single-detached urban starts both decreased from July.

“The currently elevated level of inventory of newly completed and unoccupied condominiums, and units under construction, supports CMHC’s view that condominium starts will likely see a declining trend over the coming months as developers and builders seek to limit risks of over-building,” CMHC chief economist Bob Dugan said.

“However, there may still be some variability from month to month as the number of presales for some planned condominium projects reaches sufficient levels to trigger project start.”

Regionally, the seasonally adjusted pace of urban housing starts fell in Atlantic Canada and Ontario, while it picked up in British Columbia and the Prairies.

Urban home starts were essentially unchanged in Quebec compared with July. The tick lower in the overall pace of housing starts followed a report Monday that municipalities issued $9.2 billion worth of building permits in July, driven higher in part by plans for apartment and condominium projects in Ontario and British Columbia.

The value of building permits issued was up 11.8 per cent from June and the fourth month in a row that they increased.

The housing market has been closely watched by the Bank of Canada. In its recent interest rate announcement, the central bank noted the housing market has been “stronger than anticipated.”

With files from The Canadian Press.

Just Posted

Blackfalds firefighter battling cancer

A volunteer firefighter in Blackfalds for 15 years, Dave Sutherland now battling… Continue reading

Red Deer transit users are concerned about the future

But recreation centre users are glad facility hours were maintained

Community cardiac awareness dinner and show to be held

Continued focus to bring cardiac catheterization lab to Red Deer

Red Deer businesses react to 2.02 per cent tax increase for 2018

Chamber would prefer zero increase, while DBA thinks it’s reasonable

Bring on the rodeo says Red Deer County mayor

Canadian Finals Rodeo’s move to Red Deer good for whole region, says Red Deer County Mayor Jim Wood

WATCH news on the go: Replay Red Deer Jan. 21

Watch news highlights from Red Deer and Central Alberta

RDC chosen to host 2019 men’s volleyball national championship

Sports enthusiasts in Red Deer will have more to look forward to… Continue reading

Police is still looking for Second World War army passport owner

No one has claimed a rare Second World War German army passport… Continue reading

DJ Sabatoge and TR3 Band kick off Sylvan Lake’s Winterfest 2018

Central Alberta’s youngest DJ will open for TR3 Band kicking off Town… Continue reading

Two Canadians, two Americans abducted in Nigeria are freed

Kidnapping for ransom is common in Nigeria, especially on the Kaduna to Abuja highway

WATCH news on the go: Replay Red Deer Jan. 21

Watch news highlights from Red Deer and Central Alberta

Liberals quietly tap experts to write new paternity leave rules

Ideas include creating an entirely new leave benefit similar to one that exists in Quebec

Insurers say Canadian weather getting hotter, wetter and weirder

Average number of days with heavy rain or snow across Canada has been outside norm since spring 2013

Are you ready for some wrestling? WWE’s ‘Raw’ marks 25 years

WWE flagship show is set to mark its 25th anniversary on Monday

Most Read

Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month