Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

September 03, 2009 11:15 ET

Canada Mortgage and Housing Corporation: More Starts Next Year in British Columbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 3, 2009) - Increased home sales, reflecting stronger demand, and fewer homes for sale, point to increased new home construction next year. Canada Mortgage and Housing Corporation (CMHC) forecasts 16,250 housing starts in British Columbia this year and 22,000 starts in 2010.

"Key drivers of housing demand are showing signs of improvement," noted Robyn Adamache, CMHC's Senior Market Analyst. "Housing demand from underlying population growth supports more housing starts than the numbers for the first half of the year suggest." Home construction will pick up later in 2009 and in 2010. Low mortgage interest rates, population growth and tighter resale market conditions will boost new home construction.

"In the resale market, the sales-to-new listings ratio has rebounded from levels indicating buyers' market conditions to levels consistent with balanced conditions. Existing home sales are increasing as low mortgage interest rates and lower home prices are attracting buyers," added Adamache.

Resale prices have stabilized following three quarters of declines. The provincial average resale price this year will be down compared to last year on an annual basis as a result of declines already seen. Prices will trend higher during the second half of the year as resale market conditions improve.

"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.

(Ce document existe egalement en francais)

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Contact Information

  • Canada Mortgage and Housing Corporation
    Robyn Adamache
    Senior Market Analyst
    (604) 737-4144 or Cell: (604) 787-9659
    www.cmhc.ca