New housing starts were up in Saskatoon during April, led by an increase in multi-unit dwellings. According to figures released Monday by Canada Mortgage and Housing Corporation (CMHC), construction started on 238 units during the month, up from 116 in April 2015.
Multi-unit starts jumped to 177, up from 19 starts in April 2015. Single-detached starts were 61, off from 97 the previous April.
“The trend in total housing starts moved up in April after local builders increased production of multi-unit dwellings,” said Goodson Mwale, CMHC’s senior market analyst for Saskatchewan.
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Despite the increase for the month, overall housing starts for the year are below 2015 numbers. CMHC says there have been 604 total starts in 2016 compared to 695 for the same period last year.
“Despite this increase, weak economic conditions and elevated inventory of new housing units will continue to be a constraining factor on the pace of housing starts in 2016,” said Mwale.
READ MORE: Saskatoon’s housing market overvalued: CMHC
The latest figures come on the heels of a CMHC report that found evidence Saskatoon’s housing market was both overvalued and overbuilt.
The April 27 report found that despite a 35 per cent year-over-year decline in housing starts in Saskatoon, the inventory of new homes on the market and an increased vacancy rate supported the agency’s finding.
Earlier in April, Royal LePage reported year-over-year condo prices in Saskatoon fell 10 per cent on increased inventory.
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