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CMHC predicts ongoing strength in housing sector
VANCOUVER, Nov. 14 / British Columbia's housing sector will exhibit
ongoing strength according to Canada Mortgage and Housing Corporation (CMHC).
Six hundred housing industry professionals including, lenders, appraisers,
planners, housing suppliers, builders, developers and government officials
attended CMHC's sold-out Housing Market Outlook Conference today in Vancouver.
In the conference theme of "Shifting Gears: Housing Market to 2010", CMHC
housing market experts presented on recent trends in housing markets as well
as the outlook at this annual event.
"The low inflation and interest rate environment, gains in employment and
incomes, and continued above average economic growth bode well for the
province's housing sector," stated Carol Frketich, CMHC BC Regional Economist
during her presentation on the economic and interest rate outlook. The housing
market outlook for 2007 calls for continued high levels of resale activity and
new home construction in British Columbia, although below this year's
projected totals. While some moderation is anticipated in the level of
existing home sales, the average resale price will continue to rise but at a
slower pace than in 2006.
Charles King, CMHC's BC Regional Manager of Business Development,
presented the Vancouver housing market outlook. "The long term outlook is for
the Vancouver housing market to remain strong, reflecting positive consumer
confidence to 2010," noted King. "The resale market will benefit from an
increase in supply. Home buyers will have more options as they look to become
first time buyers or choose that home close to the amenities, job centres or
transit and transportation routes they access on a regular basis," he added.
According to CMHC's Market Analysis Centre, the main challenges for BC's
housing industry in the coming years will be to find development sites in the
right location and at the right cost, securing both labour and materials costs
and keeping to project time lines. For home buyers, the main challenge will be
housing affordability as both new and resale house prices are forecast to
continue to increase, but at a slower pace than in previous years.
David Baxter, Executive Director, Urban Futures Institute, presented the
findings of a recently completed CMHC study on The Impact of the 2010 Olympics
on the Vancouver and Sea-to-Sky housing markets.
Delegates attending the Conference also learned that the housing
industry, consumers and policy makers will benefit from a new suite of
enhanced surveys and analytical reports to be introduced by CMHC's Market
Analysis Centre.
CMHC will now cover the secondary rental market, which includes apartment
condominiums, single, semi-detached and duplex units in its fall Rental Market
Reports for selected centres in Canada. In addition, market participants will
now benefit from updates on the rental market twice a year as a new rental
market survey will be conducted in April.
A new Renovation Expenditure Survey will also be introduced by CMHC to
collect information on this important market in 10 major centres.
As well, over the next year, CMHC will expand its suite of Market
Analysis publications to cover additional centers including Abbotsford in BC
and Kingston, Peterborough, Barrie, Guelph and Brantford in Ontario.
To find out more about these and other several other enhancements to
come, visit our website regularly and subscribe to CMHC's Free Market Analysis
electronic products at www.cmhc.ca/housingmarketinformation |
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