CMHC Lower Mainland Fall Housing Market Outlook

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 26, 2015) - According to Canada Mortgage and Housing Corporation's (CMHC's) Vancouver and Abbotsford-Mission Census Metropolitan Areas (CMAs) Fall Housing Market Outlook report, a stable but elevated pace of new home construction is expected for 2016 and 2017, with Vancouver CMA housing starts forecast at 20,700 and 20,100 units, respectively.

"Demand for homes in Vancouver is well supported due to a strong labour market, low mortgage rates and steady population growth," said Richard Sam, CMHC's Principal, Market Analysis for Vancouver. "Solid fundamentals will keep activity above the long-term average through 2016 and 2017."

The pace of MLS^®1 sales is set to reach 41,800, its highest level in ten years, before easing back to 38,400 in 2016 and 37,400 in 2017. Nonetheless, this pace of expected sales is still above the 10-year average. The average MLS® prices is expected to increase by nine per cent in 2015, but more modest price growth of three per cent is expected in 2016.

Abbotsford-Mission CMA housing starts are forecast to rise to 690 in 2015 and 670 in 2016 before tapering off in 2017 to 460. While these levels are higher than recent years, they remain below the 10-year average.

Total MLS® sales in the Fraser Valley Real Estate Board area for all types of homes are forecast to reach 19,300 transactions in 2015, before edging lower in 2016 and 2017. Average MLS® home prices are expected to rise 8.8 per cent in 2015 but see smaller increases in 2016 and 2017 as higher mortgage rates and the supply of homes for sale grows over the next two years.

For more information, visit www.cmhc.ca or call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

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