CMHC Spring 2008 Vancouver Real Estate Market Forecast
Thursday, May 22nd, 2008The CMHC (Canada Mortgage and Housing Corporation) released it’s Spring 2008 forecast for the Metro Vancouver region today. It’s a relatively positive forecast, predicting that the market will “moderate slightly” in 2008 and 2009.
It points to strong economic and demographic fundamentals underpinning the market, including steady job growth, population growth and continued low mortgage rates. Meanwhile, softening consumer sentiment and “high mortgage carrying costs” (I think this is their way of saying high prices) will weaken homebuyer demand.
They predict that MLS sales will dip slightly, but remain at a historically high level through the remainder of this year and 2009. Home prices will also continue to rise, but at a slower pace than recent years (8% in 2008 and 5% in 2009), as buyers have more choice and are able to take more time in making their buying decisions.
Aside from what I already mentioned above, what I take away from this is that the CMHC doesn’t see the US housing meltdown affecting us other than in some near-term negative homebuyer sentiment. I am seeing much of what is referred to in the forecast on the ground in the market today. It’s important information to keep in mind that the market has certainly shifted…whether you are buying or selling today, you need to know where the market stands.
Sebastian Albrecht, Vancouver Realtor with Royal LePage Westside
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