British Columbia’s housing starts have undergone a stiff correction in the last year, but most areas can now see light at the end of the tunnel. CMHC reports actual starts for the month of May were down 73 per cent from the same point last year.
Meanwhile, the seasonally adjusted annualized rate of new home construction in the province was just 9,400 units as of the end of May. That’s off over 52 per cent year-to-date.
A backlog in standing inventory resulting from a near total demand collapse last fall, has weighed those figures down. Though inventories remain relatively high in the province, a good deal has been cleared in recent months, and BC marketing guru Bob Rennie recently predicted an absorption of standing inventory by the fall.
Excess supply was also a determining factor in prices falling 9.8 per cent between the first quarter of 2008 and 2009. Vancouver Multiple Listing Service sales were down 10.4 per cent between this April and last, while those for Victoria were down 2.9 per cent.
Kelowna is a key market to consider when looking at the province’s start and sales figures. The popular resort destination has seen its housing market grind to a halt.
“If you look at the stats, Kelowna is off 90 per cent from last year, which has everybody in an uproar because it throws the stats off for the province,” notes Tim Kasten, president of the BC Home Builders’ Association. “They’re one of the more expensive markets in the country, so I think there’s going to be a little bit of an adjustment there.”

Renovation Market Keeps Rolling
The province’s renovation market is another story altogether. While the scope of projects has decreased, activity in the renovation market has been on the rise since at least the New Year, with some regions, such as Kamloops and Nanaimo, showing strong growth. In addition to the relatively positive economic climate, government incentives, both federal and provincial, are being credited with spurring the renovation market this year. CMHC’s 2009 Renovation and Home Purchase Report found that, among those intending to renovate in 2009, Vancouver was the urban centre with the highest average expected cost in the country, at $12,440.
“The spending that might have been taking place on buying a new home or what have you has stopped. But people will still spend money to improve their own home, either for their own pleasure, or for investment,” says Ralph Belisle, BC Chair to the Canadian Renovator’s Council. “Maybe it’s time to get to those repairs or additions that they were putting off because they were thinking about buying a new home.”
For their part, the province’s HBAs are certainly doing what they can to generate positive exposure for their membership. The Reno Mark program has now been adopted in the Greater Vancouver and Sea to Sky regions. In addition, pilot projects for Built Green Renovations have begun in Whistler, Greater Vancouver and the Interior.

Better Times Ahead
Trade supply is sufficient in the province. The BCHBA’s last report to the CHBA Economic Research Committee estimated labour supply to be adequate in 25 of 32 categories, with the other seven being only moderately under-supplied (projections for 2010, closely mimicked those for 2009).
With the worst seemingly behind them, and a positive economic and political backdrop, the BC building community is positive.
“The media did a good job of scaring everybody last fall, but I think we’re positive,” Kasten says. “A lot of people who got caught in this had never been through a recession before. I think there’s some lessons learned and people are being cautiously optimistic. ”