Housing starts up in 2010 in Kelowna, Penticton, and Kamloops

As the world continues to struggle with the aftereffects of the recession, housing starts in Kelowna hint at a recovering economy.

Kelowna area housing starts increased to 957 homes in 2010 from 657 homes the previous year, according to Canada Mortgage and Housing Corporation (CMHC).

While 2010 was an improvement over 2009, it is still nowhere near the 2,257 housing starts in 2008.

Both detached home and multi-family starts were up from 2009 levels, with 40 housing starts in December alone.

“Detached housing was the focus of new home construction last year,” says CMHC Market Analyst Paul Fabri.

“Lower lot prices and lower construction costs enabled builders to compete more effectively with the existing home market and attract more new home buyers in 2010,” says Fabri.

Favourable mortgage interest rates were also a key factor contributing to increased detached home starts.

Rental apartment construction accounted for the largest share of multi-family starts.

Lingering inventories of new, completed and occupied units constrained apartment condominium construction in 2010.

Kamloops and Penticton also recorded higher levels of new home construction in 2010.

Vernon area starts were down compared to 2009.

Gains in detached home construction were more than offset by fewer multi-family starts.

Nationally, the seasonally adjusted annual rate of total housing starts decreased to 171,500 units in December.

In British Columbia, December’s seasonally adjusted rate of urban housing starts moved higher to 27,900 units from 19,000 units in Novembeby

Castanet Staff – Story: 59405
Pam Martin, Invis, Mortgage Broker, Best Mortgage Rates, Kelowna,Vernon, Penticton, Okanagan, British Columbia, Canada