Vancouver, British Columbia, November 15, 2007 — Demand for homeownership will keep housing starts and existing home sales at above-average levels in BC and Victoria, and push new and existing home prices higher in 2008.
“In Victoria, housing demand will be supported through 2008 by ongoing job growth and a steady flow of people moving to the region” said Peggy Prill, CMHC’s Victoria Senior Market Analyst. Home prices will continue to rise, spurring demand from move-up and move-down buyers, as well as investors. In 2008, both new home starts and existing home sales will stay above the average of the last ten years, but edge down slightly from 2007’s strong levels. Look for new and resale home prices in Metro Victoria communities to increase, but at a slower pace than in recent years.
“Housing starts in BC will top 33,250 next year down slightly from this year’s 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 and a strong Canadian dollar will keep interest rates relatively flat in Canada despite upward inflationary pressures.
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 further information, please contact:
Val Rosenthal
Cell: 604-202-2609 (November 15, 2007)
Tel: 604-737-4123 (After November 15, 2007)
Carol Frketich
BC Regional Economist
Cell: 604-787-5598
e-mail: cfrketic@cmhc.ca
Peggy Prill
Victoria Senior Market Analyst
Cell: 250-360-7322
e-mail: pprill@cmhc.ca
| 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 MLS® 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 ($)1 | 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).