Canada Mortgage and Housing Corporation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 9, 2009) - According to Canada Mortgage and Housing Corporation (CMHC), construction started on about half as many homes this January compared to the same month last year. Builders broke ground on fewer single detached homes and multiple unit projects.

"The January numbers are an indication of things to come," said Robyn Adamache, senior market analyst, CMHC. "The slowing trend that began in the last part of 2008 will continue, with fewer housing starts forecast for the year ahead. A well-supplied resale market and a growing stock of unsold new homes on the market, mean that developers are holding off on new projects until more of the existing inventories are absorbed."

Moving east to Abbotsford, just 13 new homes were started in January, down from 101 units a year earlier. Home starts in Abbotsford are also expected to moderate from last year's high levels in 2009.

Provincial home starts declined to 14,100 units, seasonally adjusted at annual rates (SAAR) from 19,900 units in December 2008. At the national level, housing starts moved lower in January to 153,500 units (SAAR) from 172,200 units (SAAR) in December.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes - homes that will continue to create vibrant and healthy communities and cities across the country.

For more details on CMHC policies or the latest statistics in your specific area, do not hesitate to send me a quick note or give me a call on 604-839-3863