Not implode…Not implode… Not crash… The Housing Market will Cool. About time but Hmmmm… Where have we heard this before?.
Mortgage rates will likely rise in 2016, curtailing some of the demand in the nation’s overall housing market.The Canada Mortgage and Housing Corp. (CMHC) forecasts demand for the city’s red-hot real estate will slow in 2016 and 2017.
Multiple Listing Service (MLS) sales in Metro Vancouver are expected to decline from an estimated 41,800 this year to 38,400 by the end of next year, according to data released Monday (October 26).
By 2017, the CMHC forecasts MLS sales will fall to 37,400 across the region.
CMHC chief economist Bob Dugan said housing market activity in B.C. and Ontario has been boosted by lower energy prices, lower mortgage rates and a lower Canadian dollar.
“Demand for homes in Vancouver is well supported due to a strong labour market, low mortgage rates and steady population growth,” said Richard Sam, the CMHC’s market analysis for Vancouver, said in a statement
While those factors have offset declines in oil-producing provinces like Alberta, he expects this “counterbalancing” effect to decline over the next two years.
Prices throughout Metro Vancouver are also expected to “moderate” over that same period, according to the CHMC’s report.
The average MLS price for 2015 is $887,600 and projected to rise 3% to $914,100 by next year. By 2017, that growth is expected to dip to 2.1% with an average price of $933,200.
Probably a good time to sell now.