November 18, 2011

What's New in Vancouver's Housing Market

A number of reports were recently released that paint a brighter picture for Vancouver's housing market. A strong boost in multi-family building has helped to keep momentum going as new construction is holding steady. Many are seeing this as a sign of good things to come for Canadian real estate.

The Canada Mortgage and Housing Corporation (CMHC) has recently reported that so far this year in the Vancouver Census Metropolitan Area (CMA) there were 14,982 multiple units that have started construction, an increase of 19 percent over the same period in 2010. Compared to this time last year, the number of single-home starts has declined 10 percent while the number of multiple-unit starts has increased by an incredible 30 percent.

CMHC’s Senior Market Analyst, Robyn Adamache said, “So far this year, housing starts have been strong, higher than the same period last year, Multi-family construction, including purpose-built rental projects, led the way during the first ten months of the year. Most construction during the first ten months of the year was in the cities of Vancouver, Richmond, and Surrey.”

Globe and Mail reported recently that October's sales activity through Canadian Real Estate Association (CREA) members was the highest so far this year. The national average price is also up 5.5 percent from October 2010. CREA is now projecting national sales this year will be up 1.4 percent from 2010. Citing the most recent Remax report,  The Vancouver Sun announced that over 26, 000 homes have sold so far this year, an increase of 9 percent. "Average price in Greater Vancouver currently hovers at $791,332 — up 18 per cent year-to-date — and is expected to continue its ascent in the months ahead." Prices are continuing to rise and will continue doing so, the report adds.

The Fraser Vally Real Estate Board also released reports showing that prices of detached single family homes in the Fraser Valley have increased 4.9 percent based on price comparisons from October 2010 when the benchmark price was %505,759 and October 2011 when it increased to $530,335. The statistics for rising home prices are staying true to the most recent report from the Real Estate Board of Greater Vancouver which shows that October's benchmark home prices have increased 7.5 percent compared to last year.  These latest statistics are testimony to the strength of Vancouver's housing market and  provides further support of the positive trends predicted for 2012.