Housing Outlook Update - March 2010
®®Housing Outlook
Improved demand and rising supply
will characterize the housing market
conditions in the province. Demand
will benefit from increased momentum
of the economy.
An improving economy and job market,
together with relatively low mortgage
interest rates during the first half of
the year, will push sales of existing
homes higher in 2010. Most of this
increase will occur in the first quarter
of 2010. Purchasers, who postponed
buying a home during uncertain
economic times, are returning to the
housing market. In 2011, gradually
rising mortgage rates may have a
dampening effect on home sales.
Existing home prices in British
Columbia increased sharply during the
second half of 2009. The momentum
in resale prices is not expected to
be sustained in 2010 as the supply
of listings increases relative to sales.
Resale prices will see only modest
growth in 2011.
The number of single-detached
home starts will rise in response to
growing homeownership demand. The
introduction of the Harmonized Sales
Tax (HST) may move forward some
home starts, offsetting starts that
would have occurred in the second
half of the year. Expect 10,150 singledetached
home starts in 2010, and
11,000 in 2011.
Growing housing demand, combined
with low and declining inventories of
new and existing multiple-unit homes,
will encourage more multiple-unit
projects. Builders will focus on phased
projects, brought to the market as
demand picks up. Expect an increase
in the number of larger multiple-unit
projects in 2011.
Provided By CMHC Canada.
Morgan Rice
Squamish Real Estate REALTOR®
604-849-2668
