Weakening economic conditions have led to a slowdown in new housing starts for the Saskatoon region. The Canada Mortgage and Housing Corporation (CMHC) reported Wednesday there were significant declines during August for both single-detached and multi-family units.
The agency said homebuilders started construction on 96 new single detached units during the month, down from the 169 started in August 2014.
Multi-family unit starts declined considerably to 52 units last month from the 265 the previous August.
“In response to weakening economic conditions and elevated supply levels this year, builders have eased the pace of new construction,” said Lai Sing Louie, CMHC’s regional economist for the Prairies.
Louie said they expect fewer overall starts this year compared to last year.
Last week, the Saskatoon Region Association of Realtors said elevated inventory had turned the housing market into a buyer’s market, with sales down in almost every price range.
READ MORE: Saskatoon’s housing market moves into buyer’s territory
Overall, there have been 1,487 total housing starts so far this year in the Saskatoon region. During the same period last year, homebuilders started construction on 2,386 units.
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