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New housing starts in Saskatoon continue downward trend

New housing starts continue to trend downward in Saskatoon as homebuilders scale back production. File / Global News

Construction on new housing units in Saskatoon continue to trend downward in 2016 according to new figures released by Canada Mortgage and Housing Corporation (CMHC).

CMHC reported on Monday that there were 182 new housing starts in June, down from 216 the previous year.

READ MORE: Parade of Homes returns to Saskatoon after 2 year break

Of new starts in June, 95 were single-detached and 87 multi-family units. This compares to 120 and 96, respectively, for June 2015.

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“After the first half of 2016, the trend in housing starts is now more aligned with our forecast range of 1,690 units to 2,010 units for this year,” said Goodson Mwale, the CMHC’s senior market analyst for Saskatchewan.

“We expect weaker economic fundamentals and elevated resale supply to constrain new construction over the remainder of the year.”

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Last week, the Saskatoon Region Association of Realtors reported the city is firmly in a buyers’ market.

READ MORE: Saskatoon’s housing market firmly a buyers’ market: SRAR

Total new housing starts to the end of June 2016 number 912 – 479 single detached and 433 multi-family units.

By comparison, construction was started on 1,164 houses during the same period last year – 498 single-detached and 666 multi-family units.

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