Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

November 02, 2009 11:15 ET

Canada Mortgage and Housing Corporation: British Columbia Residential Construction to Pick Up in 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 2, 2009) – A tight resale market will lift new residential construction in 2010, according to the Canada Mortgage and Housing Corporation's (CMHC's) Housing Market Outlook Report published today. Total housing starts1 in British Columbia will be in the range of 20,200 to 26,800 homes. A rebound in both single-detached and multi-family housing starts will bring the level of residential construction closer to, but still below, the ten-year average.

"The pick up in home sales mid-2009, combined with a stronger domestic economy next year, will lead to more housing starts and increased renovation activity," said Carol Frketich, CMHC's Regional Economist for British Columbia. "In 2010, a higher level of home sales will be sustained by job and income growth, and still low mortgage interest rates. This will prompt builders to start more homes to meet a growing need for housing."

Sellers' or balanced market conditions will prevail as existing home sales pick up and higher home prices draw more listings. The average existing home price will increase modestly in 2010.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions. For more information, visit www.cmhc.ca or call 1-800-668-2642.

1 The outlook is subject to a heightened degree of uncertainty. Although point forecasts are presented in this report and press release, CMHC also presents forecast ranges and risks where appropriate. The forecasts included in this document are based on information available as of October 1, 2009.

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To view the tables accompanying this press release please click on the following link: http://media3.marketwire.com/docs/cmhc112a.pdf

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