House construction stable in coming years: CMHC

Housing starts in B.C. are forecast to remain stable over the next two years, according to the Canada Mortgage and Housing Corporation.

Home construction in North Saanich. New house building on the Island is forecast to be stable in 2016/17.

VICTORIA — Housing starts in British Columbia are forecast to remain relatively stable over the next two years, according to the Canada Mortgage and Housing Corporation (CMHC).

Construction, says the CMHC in its fall 2015 Housing Market Outlook report, will range between 25,500 to 34,100 units in 2016 with a point forecast of 30,800 units. In 2017, housing starts are forecast to range between 24,300 and 35,500 units, with a point forecast of 29,900 units.

“Demand for new homes in the province will be supported by employment and population growth combined with low mortgage interest rates,” said Carol Frketich, CMHC’s Regional Economist. “Multiple-family homes will account for about two-thirds of housing starts.

“Some moderation in demand for new single-detached homes is expected as mortgage interest rates rise later in the forecast period,” she added.

Prices are expected to rise in most British Columbia housing markets as resale markets are forecast to remain active and sellers’ resale market conditions are expected to prevail.

Multiple Listings Service (MLS(R)) sales are expected to range from 82,300 to 102,700 transactions in 2016, compared to a projected 99,000 in 2015.

The average MLS(R) home price is forecast to increase, ranging between $594,600 and $668,000 in 2016, compared to a projected $624,000 in 2015.

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 cmhc.ca/housingmarketinformation.

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

— CMHC