What is the outlook for Vancouver in 2015?

CMHC published its last quarterly Housing Market Outlook of 2014 last week. The housing agency’s forecast calls for relative stability over the forecast period which goes to the end of 2016. Housing starts, re-sales and home prices will moderate as the end of the forecast period approaches but no steep movements, either up or down, are expected.

PWC and the Urban land Institute published the 36th annual edition of Emerging Trends in Real Estate last week. The report looks at all types of properties and development but, in terms of the housing market, it identifies the continued move toward “downtown living” as a defining trend which is likely to continue. The trend is driven by consumer preferences for convenience as well as the scarcity of development land on the perimeters of urban areas.

Markets to Watch in 2015, according to the report:

Vancouver

  • Poised to lead Canada in economic growth
  • Foreign investment continues to keep housing prices high
  • New office construction stokes concerns over oversupply and downward price pressure

Vancouver is expected to lead other major Canadian cities in growth in 2015, with local GDP rising 3.2% annually over the next three years, according to a Spring 2014 Conference Board of Canada report. The same report forecasts unemployment falling from 6.2% today to 5% by 2018, due in no small part to a 1.5% rise in employment in 2014 and 2.6% growth in 2015.  Vancouver’s per-capita income is expected to rise from $41,000 to $48,000 by 2018 – welcome news in a city with such sky-high housing costs.

Article from: www.mcap.com/mortgagenews