Vancouver Island Builders Monitor the Impact of the HST on New Housing Starts

Canada Mortgage and Housing Corporation States Year-to-Date Figures Ahead of Last Year’s Pace

Vancouver Island housing starts slipped in May from last month; although, Canada Mortgage and Housing Corporation (CMHC) states that the year-to-date figures are well ahead of last year’s. According to analysts, some of Vancouver Island home builders want to get projects completed early to beat the upcoming HST, while others are holding off to gauge its impact.

The HST which is slated to come into effect on July 1^st, will combine the 7% provincial sales tax and 5% GST. The anticipated increase in the interest rates together with the upcoming HST, has made an impact on the market.

In the month of May 2010, there were 268 home starts on Vancouver Island, down 31% from 389 in April of 2010.  Although, a total of 1,665 starts to date this year are up at 167% above the same months from last year, with 624 starts.

The Greater Victoria region saw housing starts decrease to 132 in May from 213 in April; but were 158% high than the 51 starts in the same month of last year.

Lower land prices outside of the Greater Victoria region have spurred residential home construction outside of the urbanVictoria core. Other Vancouver Island communities such as the Comox Valley and Campbell River are offering great value for new homes.

Find out more from the Times Colonist.