CMHC British Columbia Housing Market Outlook

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2011) - New home construction in 2011 is forecast to be 26,400 housing starts, which is on par with 2010 levels. In 2012, the forecast is for an increase to 29,000 housing starts, according to Canada Mortgage and Housing Corporation's (CMHC's) Housing Market Outlook published today.

"Moderate growth in the economy, low mortgage interest rates and a shift to full-time employment will support homeownership demand in BC," said Carol Frketich, CMHC's BC Regional Economist.

In 2011, multiple-unit housing starts will make up a larger share of residential construction as home prices rise. Housing starts of condominiums, semi-detached homes and row homes, are expected to trend higher this year and next as builders respond to demand for this type of housing. The forecast is for multiple-unit housing starts to reach 16,900 units in 2011, which accounts for 64 per cent of total starts. This is up from 15,017 housing starts recorded in 2010.

"Resale market conditions will remain balanced with sales activity in line with fundamentals," noted Frketich. The forecast for the BC MLS®¹ average price has been revised higher in 2011 as a result of an increase of higher priced home sales recorded during the first half of the year.

As Canada's national housing agency, CMHC draws on 65 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 www.cmhc.ca/housingmarketinformation or call 1-800-668-2642.

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¹ MLS® is a registered trademark of the Canadian Real Estate Association.