Resale market to see lower sales, higher inventories around Metro Vancouver: CMHC
Posted November 6, 2018 7:16 am.
This article is more than 5 years old.
METRO VANCOUVER (NEWS 1130) – Demand and home prices appear to have softened across Metro Vancouver, the Canadian Mortgage and Housing Corporation has found.
It’s predicting that over the next two years, the region’s resale home market will be characterized by lower sales, higher inventories, and lower home prices compared to market highs we’ve been seeing recently.
The CMHC says the resale market has shifted significantly over the last year or so. This is in part due to higher mortgage rates, slower growth within the population and economy, and changes to housing policies pushing MLS Sales down 21 per cent in the first half of 2018, compared to the same time last year.
Around the province, housing starts are expected to slow going into 2019, through to the next year, “moving back towards the 10-year average pace of new construction,” the CMHA says.
Rental market conditions are also expected to loosen as a result of slower growth in demand coupled with the increased inventory that is going to enter the market.
However, this market is expected to remain tight across Metro Vancouver, as rents continue increasing faster than inflation, on average.
“The vacancy rate is expected to rise slightly; however, it will remain low in absolute terms, reflecting the strong demand for rental housing in the region,” the CMHC says.
