CMHC BC Market Insight - 3rd Quarter, 2006
BC’s housing sector saw dips in both sales and new home starts during third quarter 2006 spite robust economic expansion, strong employment growth and high levels of consumer confidence. Slightly higher mortgage rates and rising prices dampened demand, and year-to-date sales are 7.4% below 2005 levels. However, existing home prices continued their uptrend, posting a 17% gain from last year.
BC employment growth continues strong - over 60,000 more people were employed during the third quarter compared to the same period in 2005. The unemployment rate edged up to 4.8% in September, but remained well below Canada’s 6.4%, which means BC continues to draw people from other provinces to work here. The province recorded solid net gains from interprovincial migration during the first two quarters of 2006, second only to Alberta’s increases.
BC’s resale markets reported more listings and slower sales, lifting markets towards balanced conditions as supply rose to meet strong demand. At the end of third quarter 2006, most markets continued to favour sellers but are progressing towards balance in 2007. The BC average resale home price continues to rise and is approaching the $400,000 mark, pricing some potential homebuyers out of the market.
About 8,800 new homes were started in urban British Columbia (areas with a population of 10,000 or more) during the third quarter, three per cent below levels posted during the same quarter last year.
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The Schacter Team - Langley Real Estate