For the fifth consecutive month, total housing starts in Greater Edmonton declined on a year-over-year basis in February. Housing starts in the Edmonton Census Metropolitan Area (CMA) totalled to 489 units in February, down from 642 units in the second month of 2010. So far this year, total housing starts have reached 852 units compared with 1,219 starts in the first two months of last year.
Across the Alberta capital region, construction began on 360 single-detached units in February, representing a 26 per cent decrease from February 2010. After two months of activity, single-detached starts totalled 565 units, down 36 per cent from the 881 units started in the first two months of last year. Compared with this time last year when inventories were more depleted, builders have additional supply on hand as they head into the important spring selling season.
For the fourteenth consecutive month, single-detached completions increased on a year-over-year basis in February. Builders completed work on 560 units, representing an increase of 64 per cent over February 2010. Absorptions rose by 49 per cent from February 2010 to 529 units, but fell short of completions by 31 units. As a result, the inventory of completed and unoccupied units, including show homes, increased on a month-over-month basis to 587 units. This represented the seventh month in a row that inventories have moved upward compared with the previous monthly tally. On a year-over-year basis, the unabsorbed inventory was 45 per cent larger and at the highest level since July 2009.
The average price for homes absorbed in February stood at $494,014, representing a 6.8 per cent increase over the same month last year. So far in 2011, absorbed prices have risen by 6.5 per cent to $500,111. The proportion of units being absorbed this year for under $450,000 decreased to 51 per cent of the market compared with 64 per cent of single-detached homes absorbed in the first two months of 2010.
Multiple unit starts, which consist of semi-detached, row, and apartment units, decreased 18 per cent on a year-over-year basis in February to 129 units. While apartment activity improved over this time last year, semi-detached and row unit starts decreased by 18 and 79 per cent, respectively. On a year-to-date basis, multiple unit starts declined by 15 per cent to 287 units from 338 units reported in January and February 2010. Stronger activity in the suburban areas was countered by a 39 per cent decrease within the city of Edmonton.
Multi-family inventories in February stood at 1,040 units, representing an increase of 107 units from the previous month. While absorptions rose by 26 per cent year-over-year in February, the number of completions increased abruptly, particularly for apartments. While not substantially different from this time last year, inventories in February were nonetheless at the highest level in 13 months.
RE/MAX REAL ESTATE
