Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 15, 2008 08:15 ET

Canada Mortgage and Housing Corporation: Lower Mainland Housing Markets Moderating

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 15, 2008) - Following a year of near-record new home starts and existing home sales, the Metro Vancouver housing market will moderate slightly in 2008 and 2009, according to the Housing Market Outlook report released today by Canada Mortgage and Housing Corporation (CMHC). Home prices will rise, but at a slower pace than in recent years, as an increasing supply of both new and existing homes for sale give buyers more choice and more time to make their purchasing decision.

"Steady job growth and population growth, along with continuing low mortgage rates, will support demand for new and resale housing in Metro Vancouver," said Robyn Adamache, senior market analyst with CMHC. "However, softening consumer sentiment and high mortgage carrying costs will temper the effects of these positive factors, dampening homebuyer demand from the red hot pace of the past few years."

Eastward in the Abbotsford CMA, slowdowns in full-time job growth will lower demand for homeownership in the region. Housing starts will be near 2007 levels as new developments that have been in the planning stage begin breaking ground this year. However, lower housing demand will also weaken sales in both 2008 and 2009, despite population growth. Expect pressures to be placed on the rental market in the Abbotsford CMA, as the propensity for new migrants is to rent first before venturing into ownership.

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.

Contact Information

  • Canada Mortgage and Housing Corporation
    Robyn Adamache
    (604) 737-4144 or Cell: (604) 787-9659
    Email: radamach@cmhc.ca
    or
    Canada Mortgage and Housing Corporation
    Richard Sam
    Abbotsford / Fraser Valley markets contact
    (604) 737-4089 or Cell: (604) 319-3184
    Email: rsam@cmhc.ca
    or
    Canada Mortgage and Housing Corporation
    Travis Archibald
    Victoria / Vancouver Island markets contact
    (604) 737-4062 or Cell: (604) 999-7420
    Email: tarchiba@cmhc.ca
    or
    Canada Mortgage and Housing Corporation
    Paul Fabri, Market Analyst
    BC Southern Interior markets contact
    (250) 712-4334
    Email: pfabri@cmhc.ca
    Website: www.cmhc.ca