Tuesday December 8th, 2009 - Builders Almost Meet CMHC Expectations

Unless there is a catastrophic event that destroys the housing market in the next two months, it looks like builders are on pace to meet the projected forecast of completed homes set by the Canada Mortgage and Housing Corp.  Thanks to a strong second half of 2009, the goal is feasible.

The CMHC originally predicted that construction would be begin on 4,200 houses in 2009, but at the end of June, only 1,549 homes had been started.  Then, the following four months, between July and October, an additional 2.063 homes were begun.  Now, builders only need to start 589 through November and December to meet the forecast set by the CMHC.

Due to the fact that the the city approved plans on 525 single-family homes in October of 2009, it seems more than likely that the expectations set by the CMHC will be met by year end.  Also, builders and construction companies continue to start new homes in order to meet the shrinking demand as inventory levels decline.