According to a report from the Canada Mortgage and Housing Corp, the total number of housing starts in Calgary were lower in August 2012 than in August 2011, but the yearly total for 2012 continues to be at an elevated level.
Housing starts in the region were down 16 per cent from August 2011. The multi-family sector dropped by 28 per cent to 534 units. However, the single-detached category saw a two per cent gain to 505 units.
However, total starts are up 66 per cent year-over-year to 8,793 units in the single detached sector and up a huge 143 per cent in the multi-family sector.
“Gains in employment and net migration are contributing to demand for new homes in Calgary,” explained Richard Cho, the CMHC’s senior market analyst in Calgary.
In addition, some prospective buyers have looked to the new home market as the selection of homes in the resale market has moderated.”
“The number of new homes that got underway in Alberta dropped to 27,700 in August,” said Todd Hirsch, a senior economist with ATB financial, in an article in the Calgary Herald. “That figure is annualized; that is, if the pace of housing starts in August held up for 12 months, there would be this many starts in a year. It also accounts for housing starts in all areas of the province.”