Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 19, 2009 11:00 ET

Canada Mortgage and Housing Corporation: Fewer Housing Starts Expected in British Columbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2009) - A slowing job market and ample housing supply in the existing home market will contribute to fewer housing starts this year. The housing outlook improves in 2010 with smaller projected declines in resale prices, and a modest pick up in existing home sales and housing starts.

"Fewer homes will be started as builders respond to reduced housing demand and abundant supply," noted Carol Frketich, CMHC's BC Regional Economist. Starts for all home types, including single-detached, apartment condominiums, row and townhouses, will be lower in 2009. Foundations will be poured for about 6,500 single-detached homes this year. Multiple-unit starts will drop to 13,300 units in 2009, as builders focus on smaller, phased projects.

Buyers' market conditions will prevail this year. Existing home listings are trending lower but will remain at elevated levels providing more choice for homebuyers. "Homebuyers, including those looking to break into the ownership market, will benefit from lower home prices and low mortgage rates," added Frketich. The average MLS® price will decline to $403,700 this year, narrowing the price gap with the rest of Canada. In 2010, the average price for an existing home will be close to the 2009 level.

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.

For more information, visit www.cmhc.ca or call 1-800-668-2642.

(Ce document existe egalement en francais)

To view the tables accompanying this press release please click on the following link: http://media3.marketwire.com/docs/0519CMHC.pdf

Contact Information

  • CMHC
    Carol Frketich
    BC Regional Economist
    (604) 737-4067 or Cell: (604) 787-5598
    www.cmhc.ca