BC Housing Starts to Increase in 2016 and Moderate in 2017

VICTORIA, BRITISH COLUMBIA--(Marketwired - May 18, 2016) - Housing starts in British Columbia are forecast to increase this year then moderate next year, according to Canada Mortgage and Housing Corporation's (CMHC) Spring 2016 Housing Market Outlook report. Housing starts are expected to total between 35,300 to 36,700 units in 2016 and between 31,400 and 33,600 units in 2017, compared to 31,446 units in 2015.

"Demand for new homes will be supported by employment and population growth combined with low mortgage interest rates," said Carol Frketich, CMHC's Regional Economist. "Some moderation in housing starts is expected as more listings become available in the existing home market," noted Frketich. "While provincial economic fundamentals are strong relative to the past and other provinces, there is evidence of overvaluation in the Vancouver housing market which could impact the provincial outlook," she added.

Resale markets in British Columbia are forecast to remain active and sellers' market conditions are expected to prevail this year with some easing of demand and increase in supply anticipated in 2017. Multiple Listings Service (MLS^®) sales are expected to range from 103,800 to 113,000 transactions in 2016, and between 90,000 and 100,600 sales in 2017. Existing home prices are forecast to trend higher in both years, averaging between $718,000 and $756,600 in 2016 and between $722,900 and $786,100 in 2017.

For more information, visit www.cmhc.ca or call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

For more information, visit our website at www.cmhc.ca or follow us on Twitter, YouTube, LinkedIn and Facebook.

This release includes video.

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