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Can this housing starts data quell market worries?

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Real Estate Professional | 09 Jan 2015, 10:12 AM Agree 0
Housing starts in Canada were trending slightly lower in December as developers work to stabilize the pace of new home construction, and by extension the supposedly overheated housing market.
  • | 09 Jan 2015, 11:24 AM Agree 0
    Does anyone remember Halifax is in Canada.
  • Shayne Fedosenko | 09 Jan 2015, 11:35 AM Agree 0
    Realestate starts in December being higher is probably because of the changes that are occuring in the BC Building Code,I work with 5-6 Builders and they all purchased lots and scrambled to get Building Permits in by Dec 19th,some put in 7-8 permits..alot of builders are concerned in BC about the increased cost to build a new home(especially low end houses(baseboard heat etc..) I've heard Builders say the new changes(HRV,air exchange,Insulation,Doors,Build Plans etc..) May increase cost another 5-10k to build a home(Depends what the local municipalities enforce,and how) It will be interesting to see what happens..I do believe that lot prices will drop,to compensate this,they will have to,prices of new homes aren't increasing in the area I work..It was Eye Opening to see all People who are involved in Building trades who owned Subdivisions,sold as many lots as they could(worried,was reasonable on selling prices) all subdivisions owned by out of province owners,or financial groups,know nothing about actual Build Costs, that we wrote on in my opinion,didn't have a clue of this impact the new code may have.Be interesting to see what happens.
  • Deborah Kline, Sutton Victoria | 09 Jan 2015, 02:41 PM Agree 0
    In Victoria, especially on the West Shore of Langford, we continue to see a reduction in the resale prices of homes that are less than 4 years old. This is due to the low and very competitive prices of new single-family detached homes and condos which are built smaller. Families are sacrificing the luxury of interior and exterior square footage in the quest for 'new'. This means smaller yards to play in (if a yard at all), narrower streets, congested with multiple cars because most families have two cars, or tenants to help with the mortgage. The West Shore has seen a glut of new builds over the past several years and developers are often forced to reduce their profit margin substantially to continue their business. Some smaller ventures have gone belly up and the unfinished new builds are sold in foreclosure. Just look at the inactive building sites on Colwood Corners, Goldstream and Bear Mountain, where large gaping holes are all that is left behind after condo developments run out of money... It causes one to pause when buying into a new - not-yet-constructed development, that's for sure. But what is the difference between the successful builders and those who are not so successful? What's the formula for success? While it starts with a solid building plan and savvy investors, It all comes back to quality within the units and quality of life that the unit will support... The successful industry-standard for condos must have the 2 bed/2 bth with all the bells and whistles of granite, hardwood and let's not forget the square footage! For single-family homes, the 'must haves' are family-friendly (spacious) layouts with a separate family room, yards for the children and neighbourhoods that have a more open feel with parks nearby. Some developers nail this formula beautifully (always at the cost of their profit margin of course) and so, the cost of building makes it less worth their while to continue. Other developers, who are keen to increase their profit margin, sacrifice on all these things and wonder why their units do not sell. If we are going to address the real quality of life issues on the West Shore, we cannot ignore the impact of traffic congestion (the "Colwood Crawl"). A developer can build the best home, but fewer buyers will be willing to sacrifice their free time to commute. Quality matters and will continue to matter.
  • | 11 Jan 2015, 04:11 PM Agree 0
    So my understanding in most of these comments is that the government has its hand in the cookie jar (not as a helper but as a benefit from the occasion) in the sense of raising permit fees, ppty taxes and so on.... . The other idea of overhauled canadian housing is due in part to developers looking for the doubling of investment, particularly in Vancouver area. I was faced with a decisions to buy or not to buy, when I asked the sales rep in front of the developer how come the difference in lot price of $75k on identical size lot on Eagle Mountain in Abbotsford BC and the answer was "that is what we decided" of course my answer was negative. In other words, developers are investors hunting for money, govt as well, builders as well and the sales reps help make it happen (seeking money losing client). I don't se anything new. What is all the fuss about?
  • | 13 Jan 2015, 01:05 PM Agree 0
    ..or Nova Scotia for that matter...
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