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Vancouver housing market softening: BMO

VANCOUVER (NEWS1130) – The housing market is “more likely to cool than correct,” according to economists at the Bank of Montreal.  They add, “The possible exception is pricey Vancouver.”  A report from BMO Capital Markets says the “previously red-hot Vancouver market is softening.”

Economists Sherry Cooper and Sal Guatieri say “elevated price-to-income ratios do exist in four major cities: Vancouver, Victoria, Toronto and Montreal.”  They note that in Vancouver “the number of unoccupied newly built condos is high owing to the Olympic Village construction in 2010.”

However, they also point out there are more vacant condos in Montreal and a much higher condo rental vacancy rate than Vancouver’s.

The BMO report says “the cost of housing is not out of reach for the typical buyer” but adds “many in Vancouver or Toronto may need to settle for a tiny downtown condo, a small bungalow in lower-priced neighbourhoods, or a place in the suburbs.”