CMHC reported on December 10th, 2007 that November 2007 was the highest month in 30 years for housing starts. That’s big news. Over the same period last year, housing starts are up a whopping 92%!

 Now…before we get too excited about this news there might be a reasonable explanation. I would suspect that a large portion of these starts might be pent-up from the prolonged civic strike in Vancouver. It likely doesn’t explain the entire increase, but a number of these starts would likely have been spread out over the past couple of months if the strike hadn’t happened.

 However, what I find interesting is the big increase we’re seeing in the construction of condominium units. The number of single-family homes is actually dropping (364 in November 2007 vs 403 in November 2006) while condo starts are booming (2,340 vs 1,002).

“There has been a 30% increase in multi-family starts (so far this year) and it’s mainly Vancouver and Surrey (multi-family projects) that are driving the results.” Robyn Adamache, an analyst with CMHC said in an interview with the Vancouver Sun.

She expects to see housing starts begin to trend lower next year. Pointing to the difficulty in sourcing skilled labour, as well as affordability issues for consumers, she feels that housing starts have likely peaked for the time being. However, she indicates that these are the same reasons that we are seeing a boom in multi-family starts.

Builders are building what people can afford. Currently, the average price for a home in the reporting area for the Real Estate Board of Greater Vancouver is $813,137. An average condominium is nearly half the price at $418,709. Currently, there are over 75 listings of condos that are selling for under $250,000 (not new, mind you).

The affordable end of the market is where there is currently very strong activity. I believe that we’ll continue to see incredible growth in demand by both first-time buyers and investors in the condominium market, making it an excellent opportunity to put a little money in your pocket.

Sebastian Albrecht, Vancouver Realtor with Royal LePage

The Canada Mortgage and Housing Corporation released their forecast for the Vancouver housing market in 2008. They view the next year to be a positive one as far as resales and price appreciation. Interest rates are predicted to stay relatively level, and prices are predicted to continue to raise at about an average of 9.1%.

According to the CMHC press release of November 2, 2007:

“In Vancouver, housing demand will be supported through 2008 by ongoing job growth and a steady flow of people moving to the region” said Robyn Adamache, CMHC’s Vancouver Senior Market Analyst. Solid home price gains will continue to attract investors and live-in homeowners alike. These factors, combined with Vancouver’s growing international reputation as a clean, liveable city, will keep demand for new and resale housing robust. Both new home starts and existing home sales will stay near record highs, but edge down slightly in the year ahead. Look for new and resale home prices in Metro Vancouver communities to increase, but at a slower pace than in recent years.

Sebastian Albrecht, Vancouver Realtor with Royal LePage

I just listed this great potential investment property. It’s a studio apartment at 1005-1330 Hornby St in Downtown Vancouver. Given a bit of interior decorating, this studio can easily be rented for $900 - $1000 per month. A very well located condominium, it is minutes to the seawall, a short stroll Downtown, and just on the edge of all that Yaletown has to offer.

I’ll be holding an open house this weekend. Come by and take a look:

Saturday, July 14th: 2pm - 4pm

Sunday, July 15th: 2pm - 4pm 

Take a look at http://www.sebastianalbrecht.com/sales.php to see more information, or contact me at http://www.sebastianalbrecht.com/contact.php and I would be happy to show you the suite.