Thursday, June 28, 2007

CMHC "Housing Now" Report for May

CMHC released the May edition of "Housing Now" for Victoria, yesterday. You can find it here.

There wasn't much new news reported in the report. Victoria's condo construction remains at a 30 year high. Regarding all forms of housing, year to date starts are 11.7% higher than last year. The number of units under construction this May was 55% higher than May 2006. Yet, the number of units absorbed year to date are down 26.3% from last year. There is going to be a major glut of units come on stream in the next couple years. I honestly believe the developers are building too much, too fast, too soon.

Here's the graph of average SFH sale prices comparing the numbers from CMHC and the VREB. CMHC's average is lower because they remove waterfront, acreage, duplex, and manufactured home sales.