This year’s CMHC conference was very interesting. The topics of discussion included: BC Market Outlook, Victoria Market Outlook, Facilitating Affordable Housing, and a Strata Industry Update.
Travis Archibald, a Senior Market Analyst presented CMHC’s Victoria Outlook. Overall the message was positive. Sales volumes are projected to increase, prices are expected to stay steady, and interest rates are projected to remain low until 2012. These conditions will provide opportunity for first time buyers.
Carol Frketich, a BC Regional Economist presented CMHC’s Provincial Outlook. The outlook for the province was quite similar to the outlook for Victoria. The BC economy is expanding, the labour markets are improving with an average wage growth of 3% in BC, key mortgage interest rates are to remain favourable, and therefore it is projected that the resale markets will stabilize. In BC the average MLS sales price is $492,500 as compared to $339,800 for Canada, and prices are expected to rise by 0.1% in BC during 2011.
I walked away from the conference feeling cautiously optimistic. It seems like the economic recovery is in full swing, and that resale markets have stabilized. We may not experience double digit appreciation, but the low interest rates and stable prices make home ownership more accessible than ever. As home buyers our capacity to purchase has increased, and the CMHC analysts commented on the fact that Canadian’s mortgage debt is ‘good quality debt’. If you have any other questions, or want a more details on market projections please get in contact – we’d be happy to chat further.
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