{"id":38384,"date":"2018-09-28T05:54:43","date_gmt":"2018-09-28T10:54:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=38384"},"modified":"2018-09-28T05:54:43","modified_gmt":"2018-09-28T10:54:43","slug":"vancouver-housing-starts-flash-red-as-chart-rolls-over","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=38384","title":{"rendered":"Vancouver Housing Starts Flash\u00a0Red As\u00a0Chart Rolls Over"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-09-26\/vancouver-housing-starts-flash-red-chart-rolls-over\"><span class=\"field field--name-title field--type-string field--label-hidden\">Vancouver Housing Starts Flash\u00a0Red As\u00a0Chart Rolls Over<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"1098\" data-gtm-vis-first-on-screen-2077925_22=\"1098\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>Canadian housing construction starts slowed in August, coming in at a seasonally adjusted annual rate of 200,986 vs. 205,751 in July &#8211;\u00a0missing expectations of 210,300, according to\u00a0<em><a href=\"https:\/\/www.cbc.ca\/news\/business\/housing-starts-canada-real-estate-1.4818624\">CBC<\/a>.\u00a0<\/em><\/p>\n<p><em><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/vanc%20ho.jpg?itok=4WDiaqIk\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/vanc%20ho.jpg?itok=4WDiaqIk\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/vanc%20ho.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/vanc%20ho.jpg?itok=4WDiaqIk 1x\" alt=\"\" width=\"500\" height=\"327\" data-entity-type=\"file\" data-entity-uuid=\"788cf0df-d119-46ab-9da5-8fddf94bfcac\" data-responsive-image-style=\"inline_images\" \/><\/a><\/em><\/p>\n<blockquote><p><em>The decrease came as the annual pace of urban starts fell 2.5 per cent to 184,925 units. Starts of urban multiple-unit projects such as condos, apartments and townhouses fell 2.4 per cent to 132,700 units in August while single-detached urban starts fell 2.6 per cent to 52,225 units. &#8211;<a href=\"https:\/\/www.cbc.ca\/news\/business\/housing-starts-canada-real-estate-1.4818624\">CBC<\/a><\/em><\/p><\/blockquote>\n<p>&#8220;The national trend in housing starts continued to decline in August from the historical peak that was recorded in March 2018,&#8221; said Bob Dugan, CMHC chief economist. &#8220;This moderation brings total starts closer to historical averages, largely reflecting recent declines in the trend of multi-unit starts from historically elevated levels earlier in the year.&#8221;<\/p>\n<p>Of note, housing starts are in Metro Vancouver are slowing to a greater extent, falling 4% from its March 2018 peak, according to Steve Saretsky of the\u00a0<em><a href=\"https:\/\/www.zerohedge.com\/news\/2018-09-26\/%22This%20moderation%20brings%20total%20starts%20closer%20to%20historical%20averages,%20largely%20reflecting%20recent%20declines%20in%20the%20trend%20of%20multi-unit%20starts%20from%20historically%20elevated%20levels%20earlier%20in%20the%20year.%22\">VanCity Condo Guide<\/a>.<\/em><\/p>\n<p><em><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/Vancouver-Housing-Starts-12-Month-Sum.png?itok=v-gBFVYa\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/Vancouver-Housing-Starts-12-Month-Sum.png?itok=v-gBFVYa\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/Vancouver-Housing-Starts-12-Month-Sum.png\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/Vancouver-Housing-Starts-12-Month-Sum.png?itok=v-gBFVYa 1x\" alt=\"\" width=\"500\" height=\"308\" data-entity-type=\"file\" data-entity-uuid=\"86914746-55a9-41f1-b795-8532ecbb36e3\" data-responsive-image-style=\"inline_images\" \/><\/a><\/em><\/p>\n<blockquote><p>A slowdown in housing starts <strong>suggests homebuilders perceive risks ahead or simply can\u2019t make new projects feasible due to elevated land prices and construction costs<\/strong>, which is typical at this stage of the cycle. This does not bode well for future economic growth considering housing and the consumption that goes along with it (renovations, furniture, etc) are a big driver of the economy. In Canada, household consumption and residential investment as a percentage of real GDP is nearly 65%. &#8211;<em><a href=\"https:\/\/www.zerohedge.com\/news\/2018-09-26\/%22This%20moderation%20brings%20total%20starts%20closer%20to%20historical%20averages,%20largely%20reflecting%20recent%20declines%20in%20the%20trend%20of%20multi-unit%20starts%20from%20historically%20elevated%20levels%20earlier%20in%20the%20year.%22\">VanCity Condo Guide<\/a><\/em><\/p><\/blockquote>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/household-consumption-513x420.jpeg?itok=1rrR6eHA\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/household-consumption-513x420.jpeg?itok=1rrR6eHA\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/household-consumption-513x420.jpeg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/household-consumption-513x420.jpeg?itok=1rrR6eHA 1x\" alt=\"\" width=\"500\" height=\"409\" data-entity-type=\"file\" data-entity-uuid=\"1c1cc98f-c5c6-4d4a-b260-9bd1c99a2a83\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>Saretsky notes that a rebound in housing starts seems unlikely &#8220;given how extended this current expansion is,&#8221; while the labor market is at capacity and rising interest rates should cause investors to reduce exposure\u00a0<strong>considering that Vancouver home sales are at a <a href=\"https:\/\/www.thestar.com\/vancouver\/2018\/05\/02\/vancouver-homes-sales-in-april-fell-to-17-year-low-rebgv.html\">17-year low<\/a><\/strong>.<\/p>\n<blockquote><p>Instead, the construction industry is working at a frantic pace to complete existing units. Housing under construction in Metro Vancouver ticked upwards to a new record high in August- hitting a staggering 43,684 units. well above annual population growth of 30,000.\u00a0&#8211;<em><a href=\"https:\/\/www.zerohedge.com\/news\/2018-09-26\/%22This%20moderation%20brings%20total%20starts%20closer%20to%20historical%20averages,%20largely%20reflecting%20recent%20declines%20in%20the%20trend%20of%20multi-unit%20starts%20from%20historically%20elevated%20levels%20earlier%20in%20the%20year.%22\">VanCity Condo Guide<\/a><\/em><\/p><\/blockquote>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Vancouver Housing Starts Flash\u00a0Red As\u00a0Chart Rolls Over Canadian housing construction starts slowed in August, coming in at a seasonally adjusted annual rate of 200,986 vs. 205,751 in July &#8211;\u00a0missing expectations of 210,300, according to\u00a0CBC.\u00a0 The decrease came as the annual pace of urban starts fell 2.5 per cent to 184,925 units. Starts of urban multiple-unit [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[3544,1583,4834,17496,21954,1340,4318],"class_list":["post-38384","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cbc","tag-housing","tag-housing-starts","tag-steve-saretsky","tag-vancity-condo-guide","tag-vancouver","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38384"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38384\/revisions"}],"predecessor-version":[{"id":38385,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38384\/revisions\/38385"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}