Loading...
HomeMy WebLinkAboutPD-027-00 " -to"" . . DN: P027-OO ~ THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: General Purpose and Administration Committee File# Tb iC;(:::- Res. # {:;PIf-/D5 -00 Date: Monday, March 20, 2000 Report #: PD-027-00 File #: PLN 11.16 By-law # Subject: HOUSING MARKET IN CLARINGTON FILE: PLN 11.16 Recommendations, ~ It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PD-027-00 be received for information. 1. PURPOSE This report provides a brief overview of how the housing market in Clarington performed in 1999. The information provided is taken from the Canada Mortgage and Housing Corporation "Honsing Now" publication. This publication is released quarterly and provides a summary on housing market activity, particularly housing starts and house pnces. 2. HOUSING STARTS 2.1 In 1999 there were a total of 555 new home startsl. The majority (86%) of these were single detached dwellings, while the remaining 14% were townhouses. For the purposes of CMHC, link homes are defined as single detached dwellings. There were no condominium or rental dwellings started. New home starts are defmed as units where construction has advanced to a stage where full (100%) footings are in place. In the case of multiple unit structures, this definition of a sIllrI applies to the entire structure. 624 . ~ REPORT PD-027-00 PAGE 2 #' HOUSING STARTS 1998-1999 Clarington Oshawa Whitby Ajax Pickering 1998 707 415 637 489 741 1999 555 531 1377 395 445 % Change -21.5% +28% +116% -19.2% -40% The 1999 housing starts in the Durham Region lakefront municipalities reveal a decline in housing starts in Clarington, Pickering, and Ajax slightly from 1998. Oshawa experienced an increase in housing starts of 116 units, from 415 in 1998 to 531 in 1999. Whitby experienced the greatest amount of growth, experiencing an increase of 740 units from 637 starts in 1998 to 1377 starts in 1999. Although Clarington experienced a decline in honsing starts in 1999, Clarington's portion of the 1999 lakefront municipalities housing starts was second only to Whitby at 16.8%. Ajax and Pickering represent 12% and 13.5% of the 1999 housing starts respectively and Oshawa's contribution was 16.1% while Whitby provided 41.2% of 1999 housing starts. 3. HOUSING RESALES In 1999, resales in Clarington remained stable reaching 1197 homes, an increase of 19 homes from 1998 resales. Although this is only an increase of 1.6%, Clarington's resale market in 1999 represented 27% of the combined resales in Whitby, Oshawa and Clarington. 4. HOUSING PRICES In 1999 the average house price in Clarington was $160,942. This represents an increase of 3.9% over the previous year. In fact, this is the highest percentage increase compared to Oshawa or Whitby. On the other hand, the average price for a new single detached home in Clarington in 1999 was $192,501 representing a 6.6% increase over the previous year. Much of this increase, however, occurred within the last quarter when the average price for a new single detached home increased by 12.7%, the highest increase in Durham for this period. The increase in the fourth quarter reflects an upswing in the housing market. It is the result in part, of increasing construction and labour costs but also the result of move-up buyer activity. 625 ,. ., REPORT PD-027-00 PAGE 3 ~. AVERAGE NEW HOUSE PRICES; 19VG $230,000 $220,000 $210,000 ~ $200,000 $190,000 $180,000 $170,000 W hHby O.hawa Clarlngton MUNICIPALITY Despite the increase in housing prices Clarington continues to be the most affordable place to live compared to Oshawa or Whitby. 5. HOUSING ABSORPTIONS In 1999, Clarington had 435 absorbed2 single detached units. This is a decline of 127 units from 1998 figures. It is important to take into consideration the upswing in the new housing starts which occurred in the fourth quarter of 1999. Some of these units will not have been completed and as such are not reflected in the absorption rate for 1999. However, these uncompleted fourth quarter starts will be reflected in the number of absorbed units for 2000. When exammmg the housing absorption rate by price range there has been some interesting changes between 1998 and 1999. In 1999, there were 40% fewer homes absorbed having a price of less than $149,999. There were even 11.8% fewer homes absorbed in 1999 in the price range of $150,000. to $199,999. Hence in 1999, there were fewer entry level homes being absorbed than in 1998. Also of interest is the fact that in 1999 there was an increase in the number of homes having prices of greater than $400,000. which were absorbed. This represents an increase in the building of homes on larger lots, including estate lots from 1998 figures. / 2 Absorbed single detached units refers to newly completed units which have been sold or rented. The number of absolptions is obtained from a survey initiated when the structure is completed. Units sold or leased prior to construction are not considered as absorbed until the ocmpletion stage. 626 /"'" ,16 REPORT PD-027-00 PAGE 4 ... 6. A LOOK AHEAD TO 2000 In the fourth quarter of 1999, housing starts actually exceeded 1998 starts for this same time period by 12%. This increase represents a late surge in the housing market which has carried over into the first quarter of 2000. The following table clearly identifies the increase in the number of building permits received by March 9th annually from 1993 to 2000. Between 1993 to 1999 the average number of building permits received by March 9th is 99. In 2000 alone, 187 permits have been received. This is an increase of 49% from permits received in 1999. BUILDING PERMITS RECEIVED BY MARCH 9, ANNUALLY 200 180 160 140 120 r!1 100 il! ~ 80 u.. o 60 .. 40 20 o 1993 1995 1996 1997 YEAR 2000 1998 1999 19~4 7. SUMMARY . Housing starts declined in Clarington in 1999 but experienced an upswing in the fourth quarter . Housing resale activity in 1999 increased slightly over 1998 figures to 1197 sales . Average house prices for new homes rose by 6.6% reflecting greater activity in the move-up buyer market . Clarington remains to have the most affordable average house prices . Building permit application received in the first 9 weeks of 2000 are up by 47% over the average for 1993 to 1999 627 ..~ ,'lI' ", REPORT PD-027-00 PAGES . Respectfully submitted, Reviewed by, d Franklin Wu, M.C.I.P., R.P.P., Chief Administrative Officer . rome, M.C.I.P., R.P.P. of Planning & Development HB*BN*DJC March 10, 2000 628