A more balanced housing market in Vancouver next year will drive only a modest increase in home prices in 2012, according to the Canada Mortgage and Housing Corp.’s (CMHC) Vancouver housing market outlook published Friday.
CMHC said a growing population and steady job market would support moderate growth in demand for new and resale homes next year.
“As homebuyers and sellers adjust to more balanced resale market conditions there will be less upward pressure on home prices,” commented Robyn Adamache, a senior market analyst with CMHC.
The annual average MLS price for homes in Greater Vancouver is expected to increase 17% to $788,000 this year.
But that increase is expected to level off somewhat next year, CMHC said, pointing to a 2% increase to $805,000 in 2012.
Meantime, housing starts in Vancouver’s housing market are expected to increase 12% to 17,000 units this year, and a further 6% to 18,000 units in 2012.
Adamache said more multi-family home construction would offset lower levels of single detached home starts in 2012, while builders will focus on condominium construction to provide relatively low cost real estate options for buyers.
Housing starts across B.C. are expected to increase nearly 7% next year to 28,500 homes, though single detached home starts will remain below their 10-year average level.
Joel McKay
@jmckaybiv