Greater Victoria homebuilders picked up the pace in February and are on track to build about 2,000 new homes in the region, according to the Canada Mortgage and Housing Corporation.
Builders started 222 new homes last month— 69 of them single-family houses — keeping the region on pace with the same time last year. Through the first two months of 2016, there have been 359 homes started, compared with 357 at the same time last year.
“It’s good news ... February was a very good month,” said Casey Edge, executive director of the Victoria Residential Builders Association.
“Things appear to be ratcheting up significantly in the new year.”
Driven by low interest rates, strong employment numbers and increased interest in the Victoria housing market from Vancouver, Edge said local builders are feeling confident in starting new projects.
“The guys I’ve spoken with have said they are very busy,” Edge said.
Based on the strong start to the year, he said he expects to see more than 2,000 homes started this year. “I know CMHC are expecting it to be just under 2,000, but if we continue the way we have started I would expect we will be significantly over that number.”
CMHC said based on its most recent figures, it is expected Victoria will see 1,924 units built this year.
“Victoria housing starts maintained a steady trend in February. Low inventories of completed and unsold homes and an active resale housing market are evidence that population growth and low mortgage interest rates are supporting the demand for new and existing homes,” said Aida Niavarani Zadeh, senior analyst.
So far this year, Langford is leading the way among the region’s municipalities with 137 housing unit starts (that’s houses, condos and apartments) through two months. Saanich is second, having seen 124 new units. Of the 13 municipalities, only Highlands has yet to see a home started this year.
Across Canada, the number of housing starts last month picked up, boosted by a jump in multiple-unit dwellings such as condominiums, apartments and townhouses.
But the housing market in the oilpatch continued to struggle as the rate of starts in the Prairies headed lower while other major regions of the country saw increases.
“Of all the Canadian economic indicators where the national tally hides the real story, this one is right up there,” BMO Capital Markets senior economist Robert Kavcic said in a note to clients.
“On one end of the spectrum, residential construction activity is in outright recession, while on the other, new construction has flared well above past highs.”
Canada Mortgage and Housing Corp. reported the seasonally adjusted annual pace for housing starts in February increased to 212,594 units, up from 165,071 in January.
