CMHC Predicts Increase in Residential Construction

Monday, November 02, 2009 11:19 AM

Prince George, B.C. – There are some encouraging signs in the housing market.

According to the Canada Mortgage and Housing Corporation’s (CMHC’s) Housing Market Outlook Report published today, a tight resale market will lift new residential construction in 2010

Total housing starts in British Columbia will be in the range of 20,200 to 26,800 homes. A rebound in both single-detached and multi-family housing starts will bring the level of residential construction closer to, but still below, the ten year average.

“The pick up in home sales mid-2009, combined with a stronger domestic economy next year, will lead to more housing starts and increased renovation activity,” said Carol Frketich, CMHC’s Regional Economist for British Columbia. “In 2010, a higher level of home sales will be sustained by job and income growth, and still low mortgage interest rates. This will prompt builders to start more homes to meet a growing need for housing.”

Sellers’ or balanced market conditions will prevail as existing home sales pick up and higher home prices draw more listings. The average existing home price will increase modestly in 2010.

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