Vancouver building levels plunge

The volume of new homes being built across Vancouver Island have dropped 73 per cent to their lowest levels since 2000, according to data released by the Canada Mortgage and Housing Corporation...

Housebuilders broke ground on just 74 new homes across all urban centres on the Island last month, which is approximately a quarter the level recorded in February last year.

Across the whole region developers started construction on 857 new homes in February, down 76 per cent from the 3,619 units during the same month in 2008. The drops have been greater than initially expected.

"There's a cooling resale market right now, so builders are seeing less demand," one CMHC Spokesman said. "Until you see resale value pick up, you won't see builders pick up again. There's usually a six-month lag between the two markets."

Home sales dropped abruptly on Vancouver Island recently. Home sales for February fell nearly 50 per cent in Nanaimo from last year and the average sale price declined 12 per cent, from £209,000 down to £183,750.

Source: www.homesoverseas.co.uk/news