According to Canada Mortgage and Housing Corporation (CMHC), housing market conditions in Vancouver will favour buyers into early next year. Softer housing demand, combined with an ample supply of homes for sale will keep prices trending lower. Sales will remain sluggish this year, before recovering in 2010. “Low mortgage rates and home prices will attract buyers, particularly first-time home buyers through 2009,” said Robyn Adamache, Senior Market Analyst with CMHC. New home construction has declined in the first few months of the year, a trend that will moderate but persist through the remainder of 2009 and into 2010.
“Builders have acted quickly in response to changing market conditions, delaying new projects until existing inventories of both new and resale homes are absorbed,” explained Adamache. The relatively higher price of new homes compared to existing housing and the elevated number of existing homes for sale will mean less spill-over demand for new homes. However, some developers and marketers of new projects have reacted quickly, offering price reductions to attract home buyers.
Buyers’ market conditions will prevail this year. Existing home listings are trending lower but will remain at elevated levels providing more choice for homebuyers. “Homebuyers, including those looking to break into the ownership market, will benefit from lower home prices and low mortgage rates,” added Frketich. The average MLS® price will decline to $403,700 this year, narrowing the price gap with the rest of Canada. In 2010, the average price for an existing home will be close to the 2009 level.