Connect with us

Buzz

BC homebuilders ‘hit pause’ following announcement of speculation tax and other measures

Editor

Published

on

[ad_1]








Photo: Roland Tanglao/Flickr

A slowdown in BC homebuilding could be a sign that several factors — including interest rates and multiple policy measures — are taking hold and pushing back groundbreakings, a new report suggests.

BC homebuilders are on pace to begin work on 29,860 units annually in urban areas throughout the province, according to the latest estimates from the Canada Mortgage and Housing Corporation.

Although it’s an increase from the seasonally adjusted annualized rate for September, when contractors were on pace to break ground for 25,500 such units, it’s down from the 40,000 homes BC builders were trending towards over the first eight months of the year, says Central 1 Credit Union.

Housing Market News Alerts

Sign up now for news alerts on the Vancouver housing market

In Central 1’s latest B.C. Economic Briefing, its deputy chief economist outlines a number of developments that may be discouraging homebuilding, at least for the time being.

“While this [decline in housing starts] could be a coincidence, the combination of decelerated resale market conditions, higher interest rates, sluggish pre-sale activity since the introduction of mortgage ‘stress tests’, and announcement of a speculation tax, may be delaying project construction,” writes Bryan Yu, who has also worked for CMHC and the British Columbia Real Estate Association.

“Builders across the metro areas have seemingly ‘hit pause’ on new construction in September and October,” Yu adds.

Some markets were hit harder than others. Metro Vancouver saw housing starts hit an annualized rate of 17,920 units in October, overshooting the 14,240 units from September but below the 25,000-unit average observed in earlier months. Meantime, Kelowna’s annualized starts were pegged at 700 units last month, a far cry from the March–August average of 3,500 homes. “Unsurprisingly, multi-family construction was behind the sharp retrenchment, reflecting size and infrequency of projects,” Yu explains.

Yu doesn’t rule out a short-term recovery in construction levels, but his longer-range view suggests activity will remain dampened in the coming years. “Volatility in construction timing and project start dates could lead to a sharp rebound in the upcoming months,” he says. “Nevertheless, the trend is forecast to ease over the next two years given rising resale inventory, and policy constraints impacting housing demand.”

Unsold condo inventory in Metro Vancouver is already growing, says separate analysis from real estate consultancy Urban Analytics. The firm says unsold available new condo units totalled 4,478 last quarter, up 44 percent from the previous quarter.

“The increased amount of competitive supply being released to the market over the coming months combined with the softer demand will likely put additional moderate downward pressure on achievable sales values,” the Urban Analytics report reads. New condo prices have already fallen 5 to 15 percent, depending on the submarket, from their peak around the end of last year.

Urban Analytics expects this trend to continue as competition among builders leads to more price cuts.

[ad_2]

Source link

قالب وردپرس

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Buzz

New home? Prepare for the unexpected

Editor

Published

on

By

(NC) Buying a house, getting married or having your first baby are all major life events that are likely to affect your finances. But whether you’re in the midst of a major life event or not, it’s important to check in on your finances regularly to maintain good financial health.

Your financial health encompasses things like your spending, savings, borrowing and future financial plans. It also means dedicating a set amount of savings for unexpected future events. It can even include optional credit protection insurance, such as TD protection plans, to help cover your debt balances in case of death, a covered critical illness or total disability.

Even though it can be tough to think about the unexpected, life is unpredictable and it’s important to plan for the unexpected. Find more information at td.com.

Continue Reading

Buzz

Mortgage pitfalls to avoid

Editor

Published

on

By

(NC) Throughout life, you may have moments where you’ll make a large purchase or invest in a costly item, like your family home. But whether you’re in the market for your first new property or already have a mortgage, leaving this asset unprotected can be costly.   

Insuring your housing financial debt, as well as debt for other big-ticket items like a new boat for your lakefront cottage or keepsake jewelry like an engagement ring, is a smart investment in your well-being.

To help protect your debt balances like a mortgage, your bank may have optional credit protection insurance products.

“Your home is one of your biggest assets, yet illness can happen at any stage of life. Worrying about your mortgage when the focus should be on health isn’t a situation anyone would wish for,” explains Shirley Malloy, vice president at TD. “Fortunately, we offer mortgage protection to provide coverage for your outstanding balance should you face a covered critical health event.”

Mortgage protection can be purchased whether you’re in the process of applying for a mortgage or already have a home financing solution. But what about protection options for credit card debt?

“Given the unprecedented circumstances of this year, many Canadians are trying to plan for the unexpected to protect themselves and their finances,” says Malloy. “TD balance protection plus is an optional product designed to help you deal with your credit card payment obligations in the event of a covered event, such as loss of employment.”

Continue Reading

Buzz

Is your internet too slow? It’s probably not you

Editor

Published

on

By

(NC) We all know the aggravation of a school lesson that just won’t stop freezing or the family video call that looks more like a photo montage. And, as we adjust to the impact of COVID-19 on our day-to-day, that slow connection can have frustrating consequences.

Working from home and learning remotely, both need fast, stable internet, something not enough Canadians have yet. Even if you have fast devices in your home, if the infrastructure in your area is not optimal, your connection won’t be either.

Right now, cities have the infrastructure needed to ensure access. But rural and remote communities are hugely underserved, with fewer than half having high-speed internet, and fewer than a third of households on reservations have high-speed connections.

Fortunately, change is coming. The Universal Broadband Fund is backing projects across Canada right now to ensure the reliable, high-speed internet connections families need to work, study, access services online, and safely stay in touch with each other.

The fund existed before COVID, but as a response to the pandemic, its timetable has been moved up by four years to a target of 98 per cent of Canadians with high-speed internet access by 2026. With the faster pace, at least 90 per cent of us should be connected by the end of 2021.

The fund is focused on improvements in rural and remote communities across Canada to fix the disconnect between internet access for urban and rural households.  This means more remote work opportunities, better access to remote learning and safer access to healthcare, no matter where you live.

It’s not just for good connections at home, either. The improvements mean much better access to mobile networks on highways between remote communities. The result is better, safer navigation and access to emergency services for your family, even on the road in the middle of nowhere. Mobile projects will be focused on serving Indigenous communities and the roads leading to them.

The shape these improvements will take in your area will depend on where you live. Canada is huge, and its communities are hugely diverse, with diverse needs. Keep an eye out for local projects — they’re a small part of something much bigger.

Continue Reading

Chat

Trending