New home starts drop

Residential construction activity in Red Deer slowed appreciably last month.

Residential construction activity in Red Deer slowed appreciably last month.

Statistics issued by Canada Mortgage and Housing Corp. on Tuesday indicated that there were just 20 housing starts in the city during September.

All were single-detached dwellings.

In August there were 64 residential starts, including 50 single-detached projects; and in July there were 49 starts, with 28 of these single-detached homes.

However, housing starts in Red Deer also dipped last September, when the tally reached 24, of which 16 were single-detached homes.

So far this year, residential construction in Red Deer is ahead of the pace to the same point in 2011.

As of the end of September, work had begun on 447 homes, with 262 of these single-detached houses.

That was up three per cent from the 434 homes started (including 236 in the single-detached category) during the first nine months of 2011.

Elsewhere in the province, year-to-date housing starts were up 96 per cent in the Medicine Hat area, 69 per cent in the City of Grande Prairie, 60 per cent in the Calgary metropolitan area and 36 per cent in the Edmonton metropolitan area.

The Lethbridge area was down 35 per cent and the Regional Municipality of Wood Buffalo had fallen by 50 per cent.

Nationally, the seasonally adjusted annual rate of urban starts was down three per cent in September, said CMHC. But it noted that the figure was still above what economists consider necessary to meet the growth rate in household formations.

“In our view, Canada still has overbuilding concerns,” said TD economist Francis Fong.

“Demand for new homes is primarily being supported by accommodative interest rates.”

A global outlook released Monday by the International Monetary Fund singled out housing and household debt as the key areas of concerns for Canada.

“A sharp or sustained decline in house prices could seriously set back the leveraged household sector and domestic demand,” said the Washington-based financial institution.

Scotiabank economist Derek Holt said he expects Canada’s economy will take a little bit of a hit from housing during the third quarter, noting that while still strong, new home construction during the summer was below the level achieved in the spring.

Economists expect the slowing to continue across the board in starts, sales and prices in subsequent months. Over-saturation, high prices, high debt levels and recent tightening of mortgage rules are already impacting the resale market, they noted, particularly in Toronto and Vancouver.

The seasonally adjusted annual rate of urban starts for September was down 18.2 per cent in Ontario and 3.7 per cent in British Columbia. It was up 17.6 per cent in the Prairies, 20.3 per cent in Atlantic Canada and 1.3 per cent in Quebec.

With files by The Canadian Press.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Red Deer Catholic Regional Schools has a new public engagement website. (Contributed graphic)
Red Deer Catholic Schools are launching a new public engagement website

RDCRS Connects will provide feedback opportunities

Alberta is on pace to administer more than 300,000 COVID-19 vaccine doses per week, according to the provincial government. THE CANADIAN PRESS/Andrew Vaughan
One million COVID-19 vaccine doses administered in Alberta

Alberta hit a milestone in the fight against COVID-19 this week. As… Continue reading

(Government of Canada)
Liberal MP caught stark naked during House of Commons video conference

William Amos, in Quebec, appeared on the screens of his fellow members of Parliament completely naked

Red Deer Regional Hospital Centre’s expansion project is still a high priority, says Alberta Infrastructure Minister Prasad Panda. (File photo by Advocate staff)
Interior work will start this year on Red Deer hospital project, says infrastructure minister

‘We are committed. This is a top priority,’ says Presad Panda

opinion
Opinion: Waiting 4 months between vaccine doses too long

“It’s not just a matter of potency, it’s a matter of the… Continue reading

Richie Laryea of Toronto FC, left, and Jean Meneses of Mexico's Leon battle for the ball during a CONCACAF Champions League soccer match in Leon, Mexico, in Leon, Wednesday, April 7, 2021. Toronto FC hosts Club Leon in the second leg of their Scotiabank CONCACAF Champions League round-of-16 tie holding a valuable away goal after a 1-1 draw last week in Mexico. THE CANADIAN PRESS/AP/Mario Armas
Injury-riddled Toronto FC dispatches Club Leon in CONCACAF Champions League play

Injury-riddled Toronto FC dispatches Club Leon in CONCACAF Champions League play

Winnipeg Jets' Dylan DeMelo (2) skates the puck around Ottawa Senators' Thomas Chabot (72) as he holds off Winnipeg Jets' Mason Appleton (22) during first-period NHL action in Ottawa on Wednesday, April 14, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Winnipeg Jets score two third-period goals to secure 3-2 victory over Ottawa Senators

Winnipeg Jets score two third-period goals to secure 3-2 victory over Ottawa Senators

Toronto Raptors forward Chris Boucher (25) shoots over San Antonio Spurs forward Keldon Johnson (3) during the first half of an NBA basketball game Wednesday, April 14, 2021, in Tampa, Fla. (AP Photo/Chris O'Meara)
Anunoby, Siakam rally Raptors past Spurs 117-112

Anunoby, Siakam rally Raptors past Spurs 117-112

John Furlong pitches a broader B.C. bid for 2030 Winter Games

John Furlong pitches a broader B.C. bid for 2030 Winter Games

New York Yankees starting pitcher Corey Kluber throws against the Toronto Blue Jays during the first inning of a baseball game Wednesday, April 14, 2021, in Dunedin, Fla. (AP Photo/Mike Carlson)
Bichette hits 2nd homer in 9th, Blue Jays beat Yankees 5-4

Bichette hits 2nd homer in 9th, Blue Jays beat Yankees 5-4

Oklahoma City Thunder forward Luguentz Dort (5) goes to the basket as Utah Jazz forward Jarrell Brantley (5) defends during the second half of an NBA basketball game Tuesday, April 13, 2021, in Salt Lake City. THE CANADIAN PRESS/AP, Rick Bowmer
Undrafted Montreal native Dort continues to smash “glass ceilings” in NBA

Undrafted Montreal native Dort continues to smash “glass ceilings” in NBA

A man wearing a protective mask to help curb the spread of the coronavirus walks past banners for the Tokyo 2020 Olympic and Paralympic Games in Tokyo, Wednesday, April 14, 2021, to mark 100 days before the start of the Summer Games. THE CANADIAN PRESS/AP, Eugene Hoshiko
Rings on the Horizon: Tokyo Summer Olympics hit 100 days out marker

Rings on the Horizon: Tokyo Summer Olympics hit 100 days out marker

Most Read