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Starts on new homes plummet in January

Starts on new homes in Prince George and area has gotten off to a slow start, according to the latest numbers for Canada Mortgage and Housing Corporation.
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Starts on new homes in Prince George and area has gotten off to a slow start, according to the latest numbers for Canada Mortgage and Housing Corporation.

Work began on just three new single-family homes in January, compared to 16 over the same month last year, as measured by the number of new foundations put in.

Canadian Homebuilders Association-Northern B.C. president Jody Tindill said January is typically a slow time of year and suggested the difference was due to an exceptionally busy January 2015.

There were starts on seven new homes in each of January 2014 and 2013, and there were no starts in January 2011 and 2012.

Tindill said more than a usual number of building permits were taken out in late 2014, prior to a December start date for new building code provisions that came into effect. Intended to make homes more energy efficient, they also increased the cost of constructing a typical home by about 10 per cent.

That, combined with a mild winter, prompted homebuilders to start work earlier than usual, according to Tindill.

"A lot of builders here, what we do is put in our foundations in October, worst case November," Tindill said.

"And then you heat them and board them and save them and build as you can in the spring."