Rising job certainty supports single-family home construction

The pace of new single-family home construction is continuing to show improvement in the Calgary area, growing 23 per cent in March from the same time in 2016.

Shovels turned for 283 singlefamily homes in the Calgary census metropolitan last month, up from 217 in March 2016, says Canada Mortgage and Housing Corp. The census metropolitan area counts activity in neighbouring cities and towns, such as Airdrie, Cochrane, and Chestermere.

Within Calgary city limits, single-family starts increased to 202 from 164 year over year.

“We are seeing more activity on the single-detached side,” says Richard Cho, principal of market analysis for Canada Mortgage and Housing Corp. “The numbers show this, but also speaking with builders, they’re seeing a lot more traffic in show homes. A lot more interest, as well.”

Starts in the Calgary area were the most of any urban centre in Alberta, edging the 280 that broke ground last month in the Edmonton census metropolitan area.

The Calgary area has recorded a year over year increase in new construction of single-family homes every month in 2017. In February, starts climbed to 434 from 360, after increasing to 373 from 364 year over year in January.

On the upswing in the Calgary area, Cho points to “improvements in the economy.”

This includes a hike of around 18,400 jobs in the Calgary area last month, compared to the same time last year. Within this, 4,500 were of the full-time variety.

“There’s less uncertainty in the market,” says Cho. “There’s still some, but not quite as much as last year, and I think that’s helping with buying decisions.

Along with improved buying interest, the supply of single-family homes through Calgary’s resale market has pulled back from the same period in 2016, Cho adds.

At the end of March, there were 2,312 single-family homes listed through the city’s resale market, dipping 25 per cent from 3,093 a year earlier, says the Calgary Real Estate Board.

For the second straight month, northwest Calgary paced all ends of the city in construction starts of single-family homes. It had 83, followed by 41 in northeast Calgary, 32 in the Fish Creek area, 26 in the southeast, 16 in the southwest, and four in North Hill.

There’s less uncertainty in the market. There’s still some, but not quite as much as last year, and I think that’s helping …

Absorptions and completions of single-family homes were also up in the Calgary area last month. There were 315 absorbed singlefamily homes in March versus 235 a year ago, says CMHC. Completed homes grew to 346 from 239, year over year. Options for potential buyers to take immediate possession of a single-family home in the Calgary area last month widened from March 2016, as well.

There were 465 constructed but unabsorbed units in the segment last month, rallying from 364 a year ago. CMHC says this statistic typically refers to spec or show homes. Northwest Calgary was the only end with a triple-digit count of completed and unabsorbed single-family homes with 146.