Here are some recent news reports with information on the market about new construction.  I believe the hold out by developers is because they are awaiting the removal of the HST, which will save them considerable money on lot purchase and construction costs - as Rob Ron states in his comments in the first article.  The reduction in new construction  will result in more demand for less product, and perhaps an increase in the number of resale homes, which compete against new home sales, especially on the westshore.

 

Once HST has been phased out, I expect that construction will pick up again.