CMHC Vancouver 2012 Housing Market Outlook

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 4, 2011) - According to Canada Mortgage and Housing Corporation's (CMHC's) Vancouver Housing Market Outlook Report published today, a growing population and steady job market will support moderate growth in demand for new and resale homes through 2012. MLS®¹ resales are projected to increase six per cent to 33,000 transactions, and a further nine per cent, to 36,000 sales in 2012.

"Demand and supply conditions in the resale market are expected to remain balanced until later in 2012. As home buyers and sellers adjust to more balanced resale market conditions, there will be less upward pressure on home prices," said Robyn Adamache, Senior Market Analyst with CMHC. However, strong growth in single detached resale home prices during the first part of 2011 in some areas of Greater Vancouver will increase the annual average MLS® price (for all home types combined) by 17 per cent in 2011, to $788,000. Prices are projected to increase two per cent in 2012, to $805,000.

Housing starts are forecast to increase twelve per cent this year, to 17,000 units and six per cent, to 18,000 units in 2012. "More multi-family home construction will offset lower levels of single detached starts though 2012. Builders will focus on condominium construction, providing relatively low cost (compared to single detached houses) homes for local buyers and investors," added Adamache.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. 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 informed decisions.

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.

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¹ Multiple Listing Service® (MLS®) is a registered trademark owned by the Canadian Real Estate Association.