CMHC Fall 2013 Vancouver Housing Market Outlook
The Vancouver Census Metropolitan Area(CMA) forecasts housing starts in Vancouver to be slightly higher in 2014. An abundant supply of resale homes in the first 6 months of 2013 couple with slower job growth contributed to rising inventories of new and existing listings. As an result of this, development of new projects in the near-term will slow down. Housing starts are expected to be close to 18,400 units in 2014 compared to a projected 18,200 units for 2013.
Vancouver’s existing home sales has been more robust in the fall of 2013 following a slower period of sales activity in the fall of 2012 & the first 6 months of 2013. At the same time, there are fewer listings as well. As sales and new listings realigned, the existing home market returned to balanced market conditions from buyers' market conditions. According to the latest housing market outlook released October 31 by the Canada Mortgage and Housing Corporation(CMHC), existing home sales are expected to rise 8% next year with the average price on the Multiple Listing Service(MLS) forecast to edge up 1% in 2014. In its report, the CMHC said demand for homes next year is “expected to ride the momentum of a rebounding market and post some positive gains.” The improving market will be based on improved economic prospects for the province next year stemming from increased demand for B.C. goods from the province’s key export markets.