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Canada Mortgage and Housing Corporation: Residential Construction Above Average in 2008 and 2009
VANCOUVER, BRITISH COLUMBIA--(Feb. 4, 2008) - Housing starts in British Columbia will be above average, but move lower in 2008 and 2009 as economic and job growth slow, according the latest forecast from the Canada Mortgage and Housing Corporation (CMHC).
Although both multiple-family and single-family housing starts will decline in 2008, the overall level of starts will remain above the 10-year average. "Tight labour markets will keep wages and incomes rising, and people moving to the province," noted Carol Frketich, CMHC's Regional Economist for British Columbia. "Job gains and the increase in population will fuel demand for both homeownership and rental accommodation."
Single-family starts will move lower as higher costs for builders and higher prices for buyers shift new housing supply and demand to denser housing forms. "Costs of construction and new home prices are two of the factors behind the trend to more multiple-family developments," added Frketich. "Other factors include municipal policies in place to encourage denser housing forms, the desire on the part of buyers to be close to amenities, major transportation routes or their workplace, or people looking for low maintenance housing." Multiple-family starts will account for about two-thirds of projected new homes starts during the next two years.
Existing home sales, although relatively high by historical measures, will decline slightly from their 2007 level as rising prices and interest rates push mortgage carrying costs higher. The average MLS® price will reach 4,500 in 2008, extending the run-up in resale home prices into the tenth consecutive year. Growth in the average MLS® price will outpace the general rate of inflation as demand for homeownership keeps the number of resale transactions on MLS® close to the 100,000 mark.
CMHC's Housing Market Outlook, British Columbia Region Highlights released today, includes forecasts for existing home sales and prices, as well as new home construction for major centres within BC including Vancouver Census Metropolitan Area (CMA), Abbotsford CMA, Kelowna CMA, Victoria CMA, Kamloops, Nanaimo and Prince George.
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. For more information, visit www.cmhc.ca or call 1 800 668-2642.
The Housing Market Outlook, British Columbia Region Highlights report is available on the CMHC Web site: http://www.cmhc-schl.gc.ca. |
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