A stronger economy is likely to boost housing starts in B.C. by 25% to 50% in 2010, according to a forecast by the Canada Mortgage and Housing Corp.
The CHMC estimates the number of housing starts in B.C. to range from 20,200 to 24,500 this year, up from 16,077 in 2009.
It said housing demand is expected to increase along with a strengthening economy. An improving job market with relatively low mortgage interest rates are among the key drivers for more starts of both single-detached homes and multi-family buildings.
The CHMC expects the resale market will ease as conditions shift from being a sellers' to a more balanced market. By 2011, gradually rising mortgage rates will increasingly dampen home sales with resale prices only growing modestly.