Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

March 02, 2010 12:49 ET

Canada Mortgage and Housing Corporation: British Columbia Housing Starts to Increase

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2010) - Housing starts will increase in 2010 and 2011, 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 24,500 homes this year, up from 16,077 starts in 2009.

"Housing demand will benefit from increased momentum of the economy this year and next," said Carol Frketich, CMHC's Regional Economist for British Columbia. "Builders will respond by increasing new home construction." 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.

An improving economy and job market, together with relatively low mortgage interest rates will push the sales of existing homes higher in 2010. Most of this increase will occur in the first quarter of 2010. Resale market conditions will ease later in the forecast horizon, shifting from conditions favouring sellers' to balanced supply and demand. In 2011, gradually rising mortgage rates may have a dampening effect on existing home sales. Resale prices will see only modest growth in 2011.

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 forecasts included in the Housing Market Outlook are based on information available as of February 16, 2010. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.

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Contact Information

  • CMHC
    Carol Frketich
    BC Regional Economist
    Cell: (604) 787-5598
    cfrketic@cmhc.ca
    or
    CMHC - Vancouver information
    Robyn Adamache
    Senior Market Analyst
    (604) 737-4144
    radamach@cmhc.ca
    or
    CMHC - Victoria and Vancouver Island information
    Travis Archibald
    Senior Market Analyst
    (604) 737-4062
    tarchiba@cmhc.ca
    or
    CMHC - Kelowna and the Interior information
    Paul Fabri
    Senior Market Analyst
    (250) 712-4334
    pfabri@cmhc.ca
    or
    CMHC - Prince George information
    David Europe-Finner
    Market Analyst
    (250) 737-4089
    deuropef@cmhc.ca
    www.cmhc.ca