Real Estate Boom
Metro Vancouver Home Prices Headed UP in 2010
Residential building is expected to lead the construction industry in BC, as it will in the rest of the country, over the near term as institutional construction fuels the bite of reduced commercial vacancy rates hold back a rebound in that sector.
Reports paints a rosy picture for residential construction while noting that non-residential construction always lags behind the economy.
The Statistics Canada forecasts that housing starts will increase to 180,500 this year from 147,600 units in 2009, while new home prices will grow 2.4% this year and will continue to increase until 2014.
Once Bank of Canada begins to rasie interest rates later this year, mortgage rates are also expected to rise. This increase will take place gradually over a period of 18 months to 2 yrs but they will restrain the industry's growth later this year and beyond.