New home supply, MLS resales and prices to edge only slightly higher over the next two years as market remains balanced, according to CMHC’s 2015 BC Housing Market Outlook
BC housing starts are forecast to reach 28,300 homes next year and 29,000 homes in 2016, according to a report released October 30 by the Canada Mortgage and Housing Corporation (CMHC).
This compares with the CMHC’s September prediction of 27,500 housing starts in 2014.
The CMHC forecasts that MLS® re-sales in BC will total 79,200 units in 2015 and 79,300 units in 2016.
The province’s average home price is forecast to increase only slightly next year, rising to $566,300 in 2015 and $573,000 in 2016.
Carol Frketich, BC regional economist at CMHC, said, “Housing demand will be supported by employment and population growth, but tempered by gradually rising mortgage interest rates.
“Total housing starts will edge higher as resale market conditions remain balanced and the supply of completed and unabsorbed (unsold) new homes trends lower.”
Nationwide, the 2015, the average MLS resale prices is expected to be $410,600 in 2015 and $417,300 in 2016.
© 2014 Real Estate Weekly