MLA Canada has released its annual Market Intel real estate report, a review of the outgoing year, current market conditions and a forecast for 2018. The project marketing company anticipates steady supply and slower price growth in 2018 for pre-sale developments.
A global cities housing comparison shows Vancouver’s affordability ratio at 17.4, almost double that of more normalized cities like Toronto and Seattle, and creeping closer to Kowloon, Hong Kong and Shanghai. Home ownership rate in the city is at a high of 65 per cent, with median property value over $1.2 million.
Here is a summary of the real estate forecast for 2018:
- Over 11,000 units of concrete construction is expected to be released, a 33% increase in concrete supply compared to last year.
- The condo market is expected to lead the market due to affordability.
- Price escalation for all product types will normalize at 8 to 10 per cent in 2018.
- Market fundamentals indicate 2018 to be a stable and positive year. GDP, job growth, consistent population and housing starts, plus nominal interest rate changes all maintain consumer confidence and a natural flow of investment. However, the largest threat to this forecast is the political landscape.
Get your copy of MLA’s report here!