Housing Starts in 2007 at 2nd Highest Level in Nearly Two Decades

[Joe Crawford]

Real estate industry insiders have long known that new construction is
one of the best indicators of coming market conditions. According to
The Canada Mortgage and Housing Corporation (CMHC), we've just come
out of a near record year, with strong market conditions continuing
for 2008. Annual housing starts for 2007 are estimated at 229,600,
surpassing 2006 construction levels and reaching their second highest
level in nearly two decades, says CMHC.

Although there was a slight cooling of the housing market in December,
Canadians should not assume this monthly dip signals a new trend.
After two strong months in October and November, both multiple and
single-detached home starts did fall in December, but according to
CMHC this was mainly due to harsh winter weather across many areas of
the country. The 'big picture' which should interest Canadian home
buyers and sellers is what is driving the market. The conditions that
will support strong housing demand are firmly in place here in
Canada. The market is expected to remain strong this year due to low
mortgage rates, strong economic and employment performance, as well as
high consumer confidence. And those driving factors all add up to
another great year!

According to CMHC, housing starts are expected to remain strong in
2008, but are forecast to decrease to 214,300 units. That may be
slightly below the sizzling pace set by the 2007 market, but it's
still a very active year any way you look at it. And what does this
mean for Canadian consumers? Well, a lot depends on whether you're
buyer or a seller. The majority of markets are still expected to
favour the seller in 2008. Of course, that's just the national
trend. For more specific information about what's in store for your
local market in the year ahead, contact your local Coldwell Banker (R)
sales representative and take advantage of their helpful advice. It
could just be the most important call you'll make all year!