Demand For Housing
Consumer demand for housing will remain strong next year. That was the verdict from Canada Mortgage and Housing Corporation market experts who spoke at the CMHC Housing Outlook Conference in Vancouver last week.
A robust provincial economy will provide the foundation for further job creation, rising wages and population growth, keeping housing sector activity high in 2006. However, rising mortgage rates and increasing construction costs will reduce housing affordability for many British Columbia households.
Ongoing strong demand in the housing sector will push existing home prices higher, although at a slower pace in 2006 as rising interest rates dampen activity in this sector next year.
The benchmark price of a condominium in Greater Vancouver, calculated by the Real Esate Board of Greater Vancouver's Housing Price Index is $280,938, up 20.6 per cent from one year ago.
Excerpt from The Vancouver Courier - Real Estate Weekly