The Vancouver market is likely to slow down before it gets too out of control, according to a new housing market outlook by the Canada Mortgage and Housing Corporation issued May 18. The federal housing agency forecast that sales in 2016 will increase only slightly over 2015, and then reduce next year. CMHC also asserted that the dearth of new home listings would ease, as high sales prices encourage more people to list their homes. The outlook added, “The current imbalance between sales and listings is expected to unwind during the next 18 months as sales levels moderate and more listings are added. The steep increases in resale home prices that have resulted from sustained seller’s market conditions are anticipated to draw more listings onto the market”. This will result in average home price growth that continues on its upward trajectory in 2016 but rises at a slower rate in 2017, according to the CMHC. “An expected increase in listings coupled with the return of sales to levels in line with population and employment growth will result in more moderate price growth later this year and in 2017. The average MLS® price in Greater Vancouver increased 26 percent, year-over-year, in the first quarter of 2016.”
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