VANCOUVER, November 2, 2007
Demand for homeownership will keep housing starts and existing home sales at above-average levels in BC and Vancouver, and push new and existing home prices higher in 2008.
Housing starts in BC will top 33,250 next year down slightly from this years level but still above average levels noted Carol Frketich, BC Regional Economist. Factors behind this demand include: unemployment near record lows, strong employment growth, rising wages, relatively low mortgage rates and growing migration. Recent financial market turmoil in the United States will keep interest rates relatively flat in Canada despite upward inflationary pressures.
In Vancouver, housing demand will be supported through 2008 by ongoing job growth and a steady flow of people moving to the region said Robyn Adamache, CMHCs Vancouver Senior Market Analyst. Solid home price gains will continue to attract investors and live-in homeowners alike. These factors, combined with Vancouvers growing international reputation as a clean, liveable city, will keep demand for new and resale housing robust. Both new home starts and existing home sales will stay near record highs, but edge down slightly in the year ahead. Look for new and resale home prices in Metro Vancouver communities to increase, but at a slower pace than in recent years.
Canada Mortgage and Housing Corporation (CMHC) has been Canada's national housing agency for more than 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, while making vibrant, healthy communities and cities a reality across the country.
| Housing Market Outlook | |||
|---|---|---|---|
| Total Housing Starts | 2006 Actual | 2007 Forecast | 2008 Forecast |
| British Columbia | 36,443 | 36,200 | 33,250 |
| Abbotsford CMA1 | 1,207 | 1,150 | 1,200 |
| Kelowna CMA | 2,692 | 2,750 | 2,700 |
| Vancouver CMA | 18,705 | 19,000 | 18,500 |
| Victoria CMA | 2,739 | 2,445 | 2,275 |
| Total M® Sales2 | 2006 Actual | 2007 Forecast | 2008 Forecast |
| British Columbia | 96,671 | 100,500 | 93,750 |
| Abbotsford CMA | 3,853 | 3,700 | 3,650 |
| Kelowna CMA | 4,158 | 5,500 | 5,200 |
| Vancouver CMA | 36,479 | 38,300 | 37,200 |
| Victoria CMA | 7,500 | 8,300 | 7,600 |
| Average MLS® Price ($) | 2006 Actual | 2007 Forecast | 2008 Forecast |
| British Columbia | 390,963 | 438,200 | 464,500 |
| Abbotsford CMA | 303,959 | 361,700 | 398,000 |
| Kelowna CMA | 349,805 | 415,000 | 448,000 |
| Vancouver CMA | 509,876 | 571,000 | 623,000 |
| Victoria CMA | 427,154 | 465,000 | 485,000 |
SOURCE: CMHC Housing Market Outlook, British Columbia Region Highlights, Fourth Quarter 2007.
1 Census Metropolitan Area (CMA).
2 The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA).
For more information about the Canadian Housing Market, visit http://cmhc.ca/en/co/index.cfm
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.