REGINA – When it comes to housing starts year-over-year, Saskatchewan saw the biggest jump in the nation last month.
1,177 new units broke ground in urban centres in September 2013, with a strong economy helping to put shoves in the ground.
“When people have jobs and experience wage growth, that’s directly supportive of housing demand,” said Goodson Mwale, a senior market analyst for the Canada Mortgage & Housing Corporation.
Builders have recognized the demand, with a 23 per cent increase in new projects from September 2012.
It’s a sharp contrast to the rest of Canada, where urban housing starts were down over 12 per cent.
“Having a strong housing industry that can step forward when the market dictates is really important,” said Tim McMillan, Saskatchewan’s resources minister. “We have seen our capacity to build new units increase in recent years.”
The bulk of new projects in Saskatchewan this year can be seen in apartments and condos, which could help ease the strain on rental markets.
When it comes to home sales, supply is catching up to demand.
In Regina, realtors say the market has achieved balance.
“If you refer to the MLS Home Price Index, which is a more stable indicator, house prices have been declining the past two or three months,” said Lynette Keyowski, who represents the Association of Regina Realtors.
The CMHC says a larger selection of houses for sale could have its impact on new homes.
“What we call total supply is up quite sharply,” said Mwale. “Therefore, we’re expecting builders will want to respond to that.”
Total September housing starts in Regina were up 16 per cent compared to the same month last year, with Saskatoon’s increase at 27 per cent.
Comments