The CMHC recently released their semi-annual Housing Market Outlook for Vancouver. The forecast for the rest of this year and into 2008 remains bullish. Reasons for this continued strength include the continued strength of the local economy, predicted historically low mortgage interest rates, tight rental markets and continued in-migration.
Specifically, strong employment growth and steady in-migration will “keep MLS sales up near the record level achieved in 2005″. Higher mortgage carrying costs, however, will have the effect of dampening demand slightly through 2007 and 2008.
They foresee price increases continuing, but not at the steep rates we’ve recently seen (about 16% for 2006). Significantly more supply than last year will result in more modest price growth. CMHC is predicting increases of 5%-8% for resale homes in the GVRD.
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