Metro Vancouver housing prices will continue to rise after the COVID-19 pandemic, creating a drag on sales growth as homebuyers’ budgets shrink, according to the Canada Mortgage Housing Corp.’s spring outlook Thursday.
CMHC senior analyst Braden Batch predicted that Metro’s housing market will face the same housing affordability and supply-shortage challenges that existed pre-pandemic.
He said demand for housing in Vancouver last year went in two different directions: demand for home ownership expanded, and demand for rental housing receded.
The COVID-19 lockdown resulted in a major decline in the typical flow of migrants into the Vancouver region, especially very young adults and students, while lower mortgage rates triggered a burst of move-up and first-time buyers entering a market that was already experiencing dwindling inventories before 2020, added Batch.
“Vancouver’s housing market will adjust to reopening borders and development in fu...