Canada’s Mortgage Housing Corporation is predicting there will be no housing downturn in Canada. CMHC is suggesting property sales will be softer next year and prices will be flatter, but no downturn will result. New housing starts in Vancouver will grow 4% next year.
“Balanced market conditions in most local housing markets will result in a slowing in house price growth as well,” said Mathieu Laberge, CMCH’s deputy chief economist.
The average price for a single detached home in the Vancouver region should reach $1.13 million by 2013. Investors are moving their money and focus away from single family detached homes to the condo market. With prices so high, most people seeking homes will have to look at condo offerings . Others will be forced to rent.
CMHC is a federally funded organization that provides various types of mortgage insurance to protect lenders from the risks of defaults by home buyers. It’s research unit monitors residential construction activity, housing sales and provides market outlooks for various sectors of the economy.