The HST is having a real impact on the building industry inBritish Colombia, and the new figures released by CMHC support that theory.
New home construction has fallen 34% year-over-year in Nanaimoand 49% in Greater Victoria in 2011, according to the latest stats fromCMHC. These decreases have been reflected throughout the province.
Builders, province wide, blame the introduction of the HST asthe hammer that has knocked the momentum out of the market.
Slowdown in new home construction does not just hurt thebuilding industry either. Thereare ramifications for other sectors in local economies as well.
Representatives from the building industry suggest that thereneeds to be a more cohesive approach from the industry and the governmentalike, regarding the HST- and the impact on new home construction and sales.
The HST affects homes priced beyond $525,000- which, given thehigh property prices in much of the province, has implications.
There is a mail-in referendum for the HST scheduled for thesummer—and that is putting a damper on buyer’s moods and motivationsapparently. It seems, as reflected in the numbers- that there is reason to stayfirmly put on the fence.
This comes as no surprise. to those in the industry. In aCanadian Home Builder’s Association of BC sanctioned report prior to theintroduction of the HST, predictions were made in regards to impact that theHST would have on home sales, renovations and would have “far reachingnegative economic and equity implications for B.C.”
If the numbers from CMHC are any indicator, the predictions andfears have come to pass. Further driving this point home, home constructionsurged last year prior to the HST introduction- regardless of any othereconomic conditions present.
House Builders suggest that the HST has placed new homeownership outside of affordability for many, and are hopeful that this will becommunicated during this summer’s to those in the industry.
Article Courtesy of Property Wire