Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

November 02, 2005 12:05 ET

CMHC 11th Annual Housing Outlook Conference 2005; Fast Forward: Challenge the Future

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 2, 2005) - Consumer demand for housing will remain strong next year, announced Canada Mortgage and Housing Corporation (CMHC) market experts at the CMHC Housing Outlook Conference in Vancouver today. A robust provincial economy will provide the foundation for further job creation, rising wages and population growth keeping housing sector activity high in 2006. However, rising mortgage rates and increasing construction costs will reduce housing affordability for many BC households. The 11th Annual CMHC Housing Outlook Conference was attended by more than 500 housing industry professionals at Vancouver's Hyatt Regency Hotel.

According to CMHC BC Regional Economist, Carol Frketich, "the British Columbia economy is well suited to succeed in the changing global environment". Ongoing strong demand in the housing sector will push existing home prices higher although at a slower pace in 2006 as rising interest rates dampen activity in this sector next year. CMHC forecasts resale prices to increase 14.1% in 2005 and 6.1% in 2006.

Cameron Muir, CMHC Senior Market Analyst, provided evidence that a housing bubble does not exist in Greater Vancouver. "Speculative activity and growth in home prices are less than in any previous market cycle," he said. Muir acknowledged that housing starts are waning, but only as a result of the construction industry reaching capacity. Home sales will continue at a torrid pace in 2006. "We are now in the midst of a second wave of consumer demand, backed by strong economic fundamentals."

CMHC's conference also featured Murray Dinwoodie General Manager of Planning and Development for the City of Surrey who addressed Housing in the City of Surrey Now and Future and Larry Beasley, Co-Director of Planning for the City of Vancouver, presented his vision of Vancouver: City of the Future.

CMHC is Canada's national housing agency and the leading expert source of housing market information. The CMHC Market Analysis Centre in the BC Regional Business Centre produces a variety of reports, that highlight trends in the new and resale housing markets. CMHC is committed to developing healthy, sustainable housing and communities.

A backgrounder is attached. To view the backgrounder accompanying this press release please click on the following link: http://www.ccnmatthews.com/docs/cmhc112e.pdf

Contact Information

  • CMHC British Columbia Regional Business Centre
    Andrea Scott
    Senior Marketing & Communications Consultant
    (604) 737-4064 or Cell: (778) 837-1390
    ascott@cmhc-schl.gc.ca
    www.cmhc.ca