Housing starts in the Vancouver region are forecast to edge slightly higher in 2014 compared to this year’s totals.
According to the Canada Mortgage and Housing Corporation’s (CMHC) Fall 2013 outlook for the Vancouver and Abbotsford Census Metropolitan Areas (CMA), housing starts will reach 18,400 homes in 2014, marginally higher than the 18,200 homes projected for 2013.
“Higher inventories of completed and unabsorbed housing are expected to moderate the level of new home construction in the Vancouver CMA,” said Lance Jakubec, CMHC market analyst. “In the Abbotsford-Mission CMA, multiple-family construction, including new rental units, will push housing starts to about 800 homes in 2014, up from a projected 665 in 2013.”
Home sales in the areas covered by the Real Estate Board of Greater Vancouver have rebounded in the second half of 2013 and this momentum is expected to propel 2014 home sales to 29,000, compared to a projected 26,800 sales in 2013. Improving economic fundamentals as well as pent-up demand built up during mid-2012 to mid-2013 will support increasing sales and prices in 2014, the report says.
The average residential price in Vancouver is forecast to finish at $756,000 in 2013, up 3.6 per cent from $730,063 in 2012. (Tweet this fact)
Price growth is expected to rise another 1.2 per cent in 2014 to $765,000. (Tweet this fact)
Our look at CMHC’s housing forecast for all of Canada can be seen here.