"Overall, total housing starts over the next two years are projected to be relatively stable with some upside in 2020 as inventory levels come down and market balance improves", said the CMHC. In 2020, the demand for more affordable housing options is expected to be even stronger. Our outlook is for the pace of price growth to slow over the forecast horizon.
"In terms of new construction, the story is going to be more and more condos, and that seems to be where the push is both in terms of policy shift in government and higher house prices dictating demand towards high-rise construction because low-rise is out of reach for first-time buyers, and when the average price is over $1 million, it's not an easy entry point for any buyer".
Rising mortgage rates and overvaluation is seen in the capital region and will likely mean a decline in sales because of affordability for new buyers.More news: Red Dead Redemption 2 Sales Have Already Outpaced RDR1
"In Alberta's new home market, single-detached inventories have been trending higher in 2018 prompting builders to slow production".
"On a year-to-date basis, MLS sales have decreased 13.5 per cent from September 2017". For 2019, sales are expected to rise slightly, coming in between 478,400 and 497,400 units. As older units turn over, their rents will be increased to reflect the new price level. "Meanwhile, average rents for objective built apartments are anticipated to continue to see increases stronger than inflation in both 2019 and 2020".
Those rental units are finally starting to hit the market, helping propel the vacancy rate up.More news: Ex 'Big Brother' star arrested for incident with baby daddy's girlfriend
CMHC expects MLS resales across B.C.to drop from 103,759 units in 2017 to between 76,600 and 83,400 sales this year. CMHC forecast range is: $387,100 to $390,500 this year; $390,000 to $393,700 in 2019; and $394,000 to $398,600 in 2020.
"Through nine months of 2018, the average MLS price in Alberta was approximately $390,000, down 2.6 per cent from the same period in 2017. Market conditions are not expected to substantially lift the average MLS price in 2020 and price growth will continue to be relatively flat".
"Net interprovincial migration is turning positive and these new households will help lower the vacancy rate in Alberta".More news: 2-month-old Boeing plane crashed in Indonesia after key sensor replaced
Through this year, Vancouver has born witness to softening home prices across all market segments, and that trend is expected to continue, according to CMHC. However, demand for rental is anticipated to remain fairly robust and result in the apartment vacancy rate for the province increasing gradually through to 2020.