The Canadian Mortgage and Housing Corp. is now forecasting that in 2009 Greater Vancouver will see a 44% drop in the inventory of new home construction compared with 2008 levels. CMHC also sees average resale home prices dropping 13% this year and another 2.3% for 2010. Contrast this with the actual data that shows rising sales over the past few months and it becomes clear to me that the basic economics of supply and demand will provide for a fairly stable Vancouver housing market in the near future. Low interest rates and relatively low inventories of properties on the market will slow any future price declines. Please contact me to discuss this blog post or any other Vancouver real estate issues. I'd love to hear your opinion.
Here is a link to a Vancouver Su article about CHMC's forecasts: http://www.vancouversun.com/Business/housing+starts+decline+from+2008+CMHC/1609497/story.html
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