Housing starts in the Vancouver CMA are estimated to fall to their lowest in more than four decades this year. A sharp decline in units under construction and inventory levels that peaked at a relatively low level is setting the stage for home builders to ramp up production in 2010. The lag between conception and completion of new housing may create a period of under-supply in the new home market. This condition

will help underpin price levels in both the new and resale markets in Greater Vancouver.

As long as inventory levels and housing starts remain low we should continue to see stable prices and upward price pressure in the next 6 months. See the full report