| Monday, January 10, 2011 January Market Updateby Lyn Hart on Mon, Jan, 10, 2011 05:42 PM CMHC Forecasts Conservative Growth in Greater Vancouver & Kelowna
After the highly irregular and tumultuous real estate markets of 2008 and 2009, the BC real estate market returned to a relative state of normalcy in 2010. Canada seemingly avoided the worst of the turmoil of the great recession and this was reflected in the housing market, which bounced back quickly from the lows it saw in early 2009.
In Vancouver, an influx of new immigrant wealth, primarily from mainland China, has fuelled strong growth throughout the city. Our stats show that on Vancouver's Westside, Chinese buyers account for 78% of sales of homes valued at over $2 million. It is evident that many local sellers who 'cash out' from the Westside either downsize to condos or townhomes or relocate to other parts of the city or province. This, in turn, pushes prices up in these neighbourhoods, albeit at a lower rate than in the wealthiest parts of Vancouver.
With a 10-year backlog of investor-category immigrants from China, this trend is expected to continue. That said, it's unclear what further effect they will have on the upper-end of the market. Vancouver's red-hot market stabilized in 2010 and our internal projections show a similar pattern across the province in 2011.
Canadian Mortgage and Housing Corporation Forecasts:
|
|
MLS Average Price |
Price 2011 |
% Change |
|
Greater Vancouver |
$665,000 |
$685,000 |
+ 3.0% |
|
Victoria |
$500,000 |
$490,000 |
- 2.0% |
|
Kelowna |
$518,000 |
$530,000 |
+ 2.3% |
|
|
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