CMHC Lower Mainland Spring Housing Market Outlook

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 25, 2015) - According to Canada Mortgage and Housing Corporation's (CMHC's) Vancouver and Abbotsford-Mission Census Metropolitan Areas (CMAs) Spring Housing Market Outlook report, a stable pace of new home construction is expected for 2015 and 2016, with housing starts forecast at 18,700 and 19,200 units, respectively.

"Population growth will be the main driver of housing demand in the Lower Mainland, with more than 16,000 new households expected to be added to the region each year," noted Robyn Adamache, CMHC's Principal, Market Analysis for Vancouver. "Job growth and low mortgage interest rates will also support demand for housing through 2016."

The brisk pace of MLS^{® 1} sales set in the first quarter of 2015 is expected to stabilize in the remainder of the year. Nevertheless, sales are projected to surpass the long-term average annual level to reach 38,000 transactions this year and 36,000 in 2016. Similar to last year, MLS® average prices are forecast to increase by nearly five per cent in 2015. More modest price growth is expected in 2016.

Abbotsford-Mission CMA new construction is projected to move higher to 560 home starts in 2015, compared to 499 units in 2014, and to step down to 510 starts in 2016.

Total MLS® sales in the Fraser Valley Real Estate Board area for all types of homes are forecast to rise modestly in 2015, before moving lower in 2016. Higher demand for ground-oriented housing, which usually has a higher price tag, in addition to a flat supply of new listings will create a slight upward push on prices.

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).