New construction indicates strong market to continue

[Joe Crawford]

When it comes to the real estate market, there's always a great deal
of media attention regarding the number of resale homes sold and the
average house price in markets across Canada. Certainly, those
statistics give a good indication of where the market has been and
where it is now. However, one of the most interesting statistics to
take into consideration is the total of national housing starts.
Since this information reports on new construction beginning, it
provides an excellent glimpse of where home sales will be in the near
future.

According to statistics recently released by Canada Mortgage and
Housing Corporation (CMHC), the seasonally adjusted annual rate of
housing starts was up in August to 226,500 units nationally. That
represents 10,900 units more than the 215,600 units reported in the
previous month. CMHC, Canada's national housing authority, also
confirms that this high rate of housing starts is a good indication of
a continuing strong market in the months ahead.

This latest increase in national housing starts represents yet another
consecutive month of well over 200,000 housing starts, a level of
construction that hasn't been seen in recent years. That sustained
near-record construction activity also indicates a continuing strong
national housing market. Yet despite this strong showing, CMHC
predicts a gradual decrease in new homes construction between now and
the end of 2008. CMHC's view that residential construction will
decrease gradually between now and the end of 2008 mirrors a similar
forecast by the Canadian Real Estate Association (CREA) for the resale
market.
So keep an eye on new construction sales to start to drop off before
the end of next year. That could be your first alert that the market
is making an adjustment and starting to moderate.

Want more information about market trends and forecasts in your local
community? Contact me your local Coldwell Banker(R) real estate
professional and take advantage of their helpful advice.

Joe Crawford
Real Estate Sales Representative
Coldwell Banker Peter Benninger Realty, Brokerage
519 742 5800 x 2117