Record low residential inventory has Greater Vancouver builders working flat out, says the Canada Mortgage and Housing Corporation (CMHC).

“Demand for housing in Greater Vancouver remains strong,” said Cameron Muir, senior market analyst. “There were just 68 new condominium apartments complete and unoccupied in Greater Vancouver at the end of last month, with none available in the downtown core.

“This means that buyers looking for a new condominium apartment will likely have to buy a unit that is still under construction.”

While housing starts across Greater Vancouver slowed 13 per cent to 1,465 units in July over the same period last year, the dip was expected after a record number of multiple starts in the first half of the year. An increase in the City of Vancouver’s development cost levies in June encouraged many developers to begin building before the summer.

However, housing starts in July were still very strong from a historical perspective, said the CMHC, Canada’s housing agency.

“Condominium developers are working flat out to satisfy demand,” added Muir. “Currently, there are 9,868 condominium apartments under construction in Greater Vancouver. However, approximately 70 per cent of them are already presold, with many downtown projects under construction already sold out.

“The Greater Vancouver housing market is the hottest in the country. We are experiencing the largest increase in residential construction for any metropolitan area in Canada.”

A total of 19,500 housing units are forecast to begin construction in Greater Vancouver this year.

Across the province, the CMHC is predicting housing starts will reach 31,700 units in 2004, an increase of 21.1 per cent, while housing starts nationally are projected to increase just 3.3 per cent.

In 2005, B.C. is the only province expected to have a higher level of new construction activity, according to the third-quarter CMHC Housing Outlook, National Edition report.

“British Columbia’s housing sector is in the midst of a prolonged expansion,” said Carol Frketich, CMHC regional economist for British Columbia and the Yukon.

She cited the combination of an improving economy, increased employment, low mortgage rates and high levels of consumer confidence as factors in the province’s expanding housing sector.

The CMHC report said B.C. will also set a record in resale activity this year with 100,000 homes changing hands.