Central Fraser Valley home prices to keep rising: report

Canadian Mortgage Housing Corporation predicts that strong economy to push demand for housing.

Central Fraser Valley home prices to keep rising: report

The Fraser Valley housing crunch isn’t expected to significantly ease anytime soon, according to a new report by the Canadian Mortgage Housing Corporation (CMHC).

While the CMHC – Canada’s national housing agency – has warned of problematic conditions in housing markets across the country, their report on the Abbotsford-Mission area suggests a strong economy will continue to spur demand for homes, both among those looking to buy and rent. That demand is predicted to push prices nearly 20 per cent over the next two years.

Some slowdown is expected in the number of sales and acceleration of prices. Nevertheless, the CMHC says “solid economic and demographic fundamentals are supporting buyer demand,” as is the fact that prices in Abbotsford and Mission remain significantly below those in Langley and Surrey.

The report predicts the number of sales will remain above average through 2018. The proportion of those sales involving apartments and townhouses are expected to increase, but the most sales will continue to involve single-family houses.

“The attraction of purchasing these types of properties has traditionally been high in the region and is expected to continue through the forecast period, with demand for single-detached homes coming from young families and move-up buyers while demand for townhomes comes from first-time buyers and people looking to downsize,” the report says.

The CMHC also predicts competition will remain stiff for rental units in the area. The report predicts that the high demand may also push rental rates higher.

Spurring all the housing demand is a strong economy. While unemployment levels rose slightly in 2016, Abbotsford-Mission is expected to see more new jobs over the next two years, thanks to strong manufacturing, construction, and service sectors.

But the forecast isn’t a guarantee, the CMHC cautions. A variety of factors could affect the local housing market, including rising mortgage rates, significantly lower home prices closer to Vancouver, changes to the Canadian dollar, or weaker job growth. New mortgage rules announced earlier this month by the federal government that subject home buyers to a “stress test” could also have an impact.


Just Posted

/  Bob Friesen Photos
Father’s Day Parade cruises through Mission

Taking It To The Streets event featured about 100 vintage vehicles

Special weather statement issued for Fraser Valley as first summer heat arrives June 20, 2021, and set to persist all week. (Photo by James Day on Unsplash)
Second day of hot temperatures rippling across Fraser Valley

Communities from Abbotsford to Hope will see daytime high maximum temps of 32 degrees

FILE – Perry Bellegarde, National Chief of the Assembly of First Nations, takes part in an event on Parliament Hill in Ottawa on Tuesday, July 7, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Indigenous Peoples Day must be a ‘call to action’, says Assembly of First Nations chief

Discovery of children at Kamloops residential school site must lead to change, Perry Bellegarde says

The theme for this year’s Fraser Valley Regional Library Summer Reading Club is “Crack the Case” and Katie Burns, community librarian at the Chilliwack Library, is encouraging people of all ages to sign up. She is seen here at the Chilliwack Library on Friday, June 18, 2021. (Jenna Hauck/ Chilliwack Progress)
Crack the case, read, win prizes with FVRL Summer Reading Club

‘Immerse yourself in other worlds and have a bit of fun while you do it,’ says Chilliwack librarian

Police tape is shown in Toronto Tuesday, May 2, 2017. Statistics Canada says the country's crime rate ticked up again in 2018, for a fourth year in a row, though it was still lower than it was a decade ago. THE CANADIAN PRESS/Graeme Roy
CRIME STOPPERS: ‘Most wanted’ for the week of June 20

Crime Stoppers’ weekly list based on information provided by police investigators

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

Tokyo 2020 President Seiko Hashimoto and IOC President Thomas Bach, on a screen, speak during a five=party online meeting at Harumi Island Triton Square Tower Y in Tokyo Monday, June 21, 2021. The Tokyo Olympics will allow some local fans to attend when the games open in just over a month, Tokyo organizing committee officials and the IOC said on Monday. (Rodrigo Reyes Marin/Pool Photo via AP)
Tokyo Olympics to allow Japanese fans only, with strict limits

Organizers set a limit of 50% capacity — up to a maximum of 10,000 fans

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

A portion of the George Road wildfire burns near Lytton, B.C. in this Friday, June 18, 2021 handout photo. THE CANADIAN PRESS/HO, BC Wildfire Service *MANDATORY CREDIT*
Blaze near Lytton spread across steep terrain, says BC Wildfire Service

Fire began Wednesday and is suspected to be human-caused, but remains under investigation

(Black Press Media files)
Burnaby RCMP look for witnesses in hit-and-run that left motorcyclist dead

Investigators believe that the suspect vehicle rear-ended the motorcycle before fleeing the scene

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

RCMP crest. (Black Press Media files)
Fort St. John man arrested after allegedly inviting sexual touching from children

Two children reported the incident to a trusted adult right away

A police pursuit involving Abbotsford Police ended in Langley Saturday night, June 20. (Black Press Media file)
Abbotsford Police pursuit ends in Langley with guns drawn

One person arrested, witnesses say an officer may have been hurt in collision with suspect vehicle

Most Read