The Vancouver housing market weathered the economic crisis better than many local markets, and is currently experiencing an increase in average prices and volumes. To quote a term widely used by the stock market, Vancouver could be considered a blue chip of the real estate market. Much like the stocks that are viewed by investors as stable and secure investments, our housing market has developed an international reputation for quality, reliability, and the ability to operate profitably in good times and bad. When studying the Vancouver Housing Market, it can be beneficial to take a look at the bigger picture and how specifically the Loonie, Interest Rates and the Canadian Housing Market as a whole can affect us.  The fiscally responsible governments of both British Columbia and Canada have assisted in the creation of this profitable economy and business sector, one that allowed our business climate to recently weather one of the worst recessions seen since the great depression. Our recovery not only increased consumer confidence but also made our city even more attractive to the world. The current stable economy is translating into economic prosperity for all.  A strong dollar, reliable banking system, and historically low interest rates due to the fact that Canada is considered a low risk market, are all underlying factors in this prosperity. Add to this data, an estimated increase in the employment rate of 1.6% in 2011*and an additional 1.7% in 2012* and overall improving economic conditions, and together these lead to an increase consumer confidence. An increase in consumer confidence stimulates borrowing thus leading to a healthy housing market. What does the future hold? With a stable majority federal government in place, generationally low interest rates expected to continue for the foreseeable future, increasing immigration and a shortage of supply in both the rental and end user markets, all signs point toward continued strength in demand for the housing market. After an incredibly active Spring market, we do expect a slight decrease over the summer months as a result of seasonality, but the Fall market should once again be an active market as new product becomes available. Because of these factors Canadian housing starts for 2011 (179,500 starts) are estimated to be on par with those of 2010, with an increase expected for 2012 (185,300 starts)*. Resales for 2011 and 2012 for all of Canada are both expected to increase to 452,100 and 461,300 respectively with the average price in Canada increasing to $361,100 in 2011 and $364,200 in 2012*. The average price is expected to maintain stable throughout Vancouver as we continue to experience balanced market conditions.  Therefore, if you are looking to get into the Vancouver market, based on the current macro-economic indicators, this blue chip investment should be a safe and reliable opportunity for years to come. Cameron McNeill *Source: CMHC Housing Market Outlook – Canada Edition: Second Quarter 2011