Market Outlook 3rd Quarter 2007
Overview.
Income growth, a tight labour market and high levels of consumer confidence wil help to offset the dampening effect of rising morgage rates on the demand for new and existing homes in BC. The result will be a high, stable level of resale activity in 2007, rising home prices and a slight decline in new home construction compared to last year.
Fewer Single Detached Starts Anticipated.
Some home buyers will choose to purchase an existing home rather than a new home, leading to a decline in the number of single-detached home starts. Multiple-unit home starts will continue at a pace similar to last years, resulting in a modest decline in overall new construction.
MLS Price Growth to Slow
Average resale home prices in BC will rise slower in 2007 and 2008. An increased supply of existing homes will provide buyers with more choice, while higher mortgage carrying costs result in fewer resale transactions compared to last year's near record level.
Source: CMHC Forecast, MLS, CREA or Local Real Estate Board
Income growth, a tight labour market and high levels of consumer confidence wil help to offset the dampening effect of rising morgage rates on the demand for new and existing homes in BC. The result will be a high, stable level of resale activity in 2007, rising home prices and a slight decline in new home construction compared to last year.
Fewer Single Detached Starts Anticipated.
Some home buyers will choose to purchase an existing home rather than a new home, leading to a decline in the number of single-detached home starts. Multiple-unit home starts will continue at a pace similar to last years, resulting in a modest decline in overall new construction.
MLS Price Growth to Slow
Average resale home prices in BC will rise slower in 2007 and 2008. An increased supply of existing homes will provide buyers with more choice, while higher mortgage carrying costs result in fewer resale transactions compared to last year's near record level.
Source: CMHC Forecast, MLS, CREA or Local Real Estate Board
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