Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 19, 2009 11:00 ET

Canada Mortgage and Housing Corporation: Buyers' Market Conditions Prevail in Vancouver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2009) - According to Canada Mortgage and Housing Corporation (CMHC), housing market conditions in Vancouver will favour buyers into early next year. Softer housing demand, combined with an ample supply of homes for sale will keep prices trending lower. Sales will remain sluggish this year, before recovering in 2010. "Low mortgage rates and home prices will attract buyers, particularly first-time home buyers through 2009," said Robyn Adamache, Senior Market Analyst with CMHC.

New home construction has declined in the first few months of the year, a trend that will moderate but persist through the remainder of 2009 and into 2010. "Builders have acted quickly in response to changing market conditions, delaying new projects until existing inventories of both new and resale homes are absorbed," explained Adamache. The relatively higher price of new homes compared to existing housing and the elevated number of existing homes for sale will mean less spill-over demand for new homes. However, some developers and marketers of new projects have reacted quickly, offering price reductions to attract home buyers.

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 - homes that will continue to create vibrant and healthy communities and cities across the country.

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