cheaprealty net

CMHC notes actual single family home urban housing starts are down around 14.5% in the first 4 months of 2007 versus the first 4 months of 2006. This is blamed on affordability and a skills shortage.

What is not explained is how there was enough skill last spring to start 14% more houses.

Looks like developers are keeping an eye on what is happening south of the border, and are trying to engineer the proverbial soft landing.

"The larger decrease in single starts reflects the growing interest in less expensive multiple units, which was expected after several years of strong price growth" added Bob Dugan.

Newsflash - houses are too expensive. Cheaper would be better!

For an excellent take on the mechanisms that could trigger a housing price collapse, check out this post by Charles Hugh Smith on the Interest Rate See-Saw.