Housing contruction stabilized in 2012
There’s been little movement in the home construction sector.
There were 165 housing starts in 2012 in Vernon, up slightly from 163 starts in 2011.
Experts believe there is one primary factor as to why there wasn’t much growth.
“Vernon’s new home market is facing strong competition from a well-supplied existing home market,” said Paul Fabri, an analyst with the Canada Mortgage and Housing Corporation.
“A lot of people are turning to existing homes (because of price).”
The other factor impacting construction activity has been the lack of employment growth in the region.
Of the 165 starts in Vernon during 2012, 125 were single-detached units while 40 were multiple units.
For December, there were 15 starts in Vernon, up from eight during the same month in 2011.
CMHC is forecasting a modest increase in Vernon housing starts in 2013.
“B.C. is expected to see increased migration into the province and employment growth,” said Fabri.
“The number of listings of existing homes is also being drawn down.”