Lyn Hart

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