Climbing house prices have created sellers' market, economist says
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Updated: October 16, 2009 10:43 AM
The rate of new home construction in Richmond continues to struggle when compared to last year's booming pace, while buyer demand remains strong.
September saw 34 new housing starts, compared to 170 the same month one year ago.
Year-to-date figures show housing starts in 2009 are one-third the volume of 2008. As of Oct. 1, construction of 505 new homes began this year, compared to 1,505 for the same period last year.
The construction market is, however, showing signs of recovery. According to Canada Mortgage and Housing Corporation, the month of September yielded the second highest number of housing starts in the region—despite the drop in overall volume.
The largest decline in housing starts is in the multi-family sector, where construction of condominiums and townhouses is down 70 per cent from last year's levels.
Meanwhile, the housing market across the province is gaining momentum, according to numbers released by the B.C. Real Estate Association Thursday.
“Low mortgage interest rates and renewed confidence in real estate assets has propelled B.C. home sales to a level not seen in two years," said Cameron Muir, the association's chief economist.
Residential sales in the province last month were 68 per cent higher than in September 2008.
In Greater Vancouver, the average Multiple Listing Service sale price climbed 14 per cent to $610,576 from $535,598.
Muir said market conditions have created a sellers' market in the Lower Mainland, where home sellers have the advantage over home buyers.
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