London area housing starts up by 42%

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Home building in the London area has reached its highest levels in nearly a decade, according to the latest data from the Canada Mortgage and Housing Corporation.
 
Year-to-date single-family starts in London grew by 42 per cent compared to the same period last year—up to 784 starts, The London Free Press reported.
 
“Our members say model home traffic and sales are solid. Consumer confidence seem very high in the housing market in the London region,” London Home Builders’ Association president Trevor McKenzie said.
 
London’s single-family segment—which primarily consists of 12-metre-lot homes in the $375,000-$450,000 range—has seen scarcer supply over the past year. This has led to much intensified bidding in the area.
 
“What we’re hearing is that home buyers are getting caught in multiple-offer situations and they’re looking to new homes as an alternative,” he added.
 
The CMHC data revealed that London-St. Thomas builders started 179 homes in July, compared to the 118 in the same month in 2015. The area saw 138 single-family starts last month, up from 93 the year before.
 
Multi-family intentions in London also fared quite well with 915 starts to date this year, compared to 647 in the first 7 months of 2015.
 
A contributing factor to the increased dynamism in London is the exodus of would-be owners fleeing the overheated Toronto market.
 
“We have seen buyers coming from much further east of here looking for more affordable housing … They are being pushed out of the GTA market,” McKenzie explained.

Related Stories:
CREA releases latest sales figures
CMHC releases third quarter Housing Market Assessment

 

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