Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

August 31, 2010 11:15 ET

Canada Mortgage and Housing Corporation: British Columbia Housing Start Forecast for 2010 and 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2010) - Housing starts in British Columbia will moderate in the second half of the year, after a strong first half, with the expectation of just under 24,000 total starts for 2010 according the Canada Mortgage and Housing Corporation (CMHC).

"Two factors moved some sales and starts forward in 2010 – the expectation of rising mortgage rates during the second half of the year and the HST implementation July 1," noted Carol Frketich, CMHC's BC Regional Economist. Single-detached home starts exceeded their 10-year average during the January to June period. Multiple-unit home starts, which include condominiums and townhomes, will ease during the remainder of this year then increase during 2011 in response to a pickup in homeownership demand driven by improving economic fundamentals and continued strong migration flows into the province.

The resale market has moved to balanced market conditions with demand for homeownership in line with the supply of existing homes for sale. The number of resale transactions is expected to remain in line with job and population growth, approaching 82,500 sales in 2010 and 86,400 sales in 2011.

The ratio of sales to new listings, a barometer of resale market conditions and predictor of future home prices, points to modest price movements in the second half of this year. Resale home prices are expected to increase marginally next year.

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, and to download CMHC's housing reports, please visit CMHC's website at http://www.cmhc.ca/housingmarketinformation or call 1-800-668-2642.

Contact Information

  • Canada Mortgage and Housing Corporation
    Carol Frketich
    BC Regional Economist
    (604) 737-4067 or Cel: (604) 787-5598
    cfrketic@cmhc.ca
    www.cmhc.ca