As we predicted this time last year, despite a slow start to the year, British Columbia’s housing market rallied with 2013 coming to a close aligned with the 10-year trend. According to CMHC and the newly released PwC Emerging Trends in Real Estate 2014 survey, sales (largely driven by the Metro Vancouver area) have finished strong in 2013. We expect to see home sales increase approximately 9.8% next year and, with listings trending downward, we see prices holding steady and the return of a balanced market.

The good news continues for the BC economy as we see housing demand bolstered by business investment, the creation of more full-time jobs and an increased appetite for BC’s goods in foreign markets. An expanding economy and the expectation of steady international migration into the province will create demand for new housing which the new home construction industry will support by adding 18,400 homes to the market.

Capping it off, interest rates are forecasted to stay at near all-time lows for 2014 and into 2015 — making home ownership easier — especially for first time buyers entering the market or for those looking to move up.

CMHC’s annual housing forecast which was held early November had the following highlights:

• BC’s local economy is expected to expand moderately by 2.5% in 2014, ahead of national averages and trending higher than recent years.
• With the influx of international immigrants to BC as well as a forecasted reversal of interprovincial out-migration, the BC population is expected to increase by 28,000 in 2013, and 31,700 in 2014.
• BC is experiencing a healthier full-time employment rate and higher weekly wage averages.
• Canadian interest and mortgage rates are projected to remain low for the remainder of 2013 and 2014.
• A stable sales-to-listings ratio of 16.6% puts home buyer and seller activity in Metro Vancouver in-line with the region’s 10-year average and is considered a “balanced” market.

So, what does this mean for buyers? Metro Vancouver will continue to offer excellent opportunities in blue chip real estate. Greater selection will be met by increased demand for housing and we see prices keeping pace with current levels. Prospective homeowners will see an increased range of housing choices and creative options designed to meet their specific needs: larger homes for baby boomers, affordable options for first-time buyers, and efficient homes designed around transit and amenity-rich hubs that will appeal to the renter.

In 2014, homeowners can continue to invest in Metro Vancouver neighbourhoods with confidence knowing that this region will continue to enjoy economic prosperity and strong real estate fundamentals.

Sources:
CMHC Housing Market Outlook & Housing Now
Stats Canada, Migration: International 2010 and 2011 (July 2013)
Real Estate Board of Greater Vancouver (November 2013 News Release)