B.C. home sales forecast to decline
Sun
B.C. home sales are forecast to decline almost 10 per cent this year, and decline a further two per cent in 2009, according to the British Columbia Real Estate Association’s spring housing forecast.
“Some weakness on the export side of the economy and eroding affordability will have an impact on housing demand over the next two years,” BCREA chief economist Cameron Muir said in a news release issued Tuesday.
BCREA reported that B.C. home sales were down 14 per cent in the first quarter of 2008, while active listings were up 24 per cent.
“More balance between demand and supply means less upward pressure on home prices. It also reduces the chance of multiple bids on the same home, giving homebuyers more time to investigate properties thoroughly before purchasing,” Muir said in the release.
The average Multiple Listing Service price in the province climbed 12 per cent, to $438,975, in 2007.
This year, BCREA forecasts an increase of nine per cent, to $479,000, with a more modest four-per-cent rise, to $499,000, expected in 2009.
The volume of home sales is expected to ease right across Canaeda, the Canadian Real Estate Association said Tuesday.
The CREA report said Canada-wide home sales are predicted to decline 11.5 per cent to 460,900 units in 2008. CREA anticipates a further four-per-cent fall in the volume of sales in 2009.
“Rising prices are continuing to erode affordability and for that reason sales activity is forecast to decline,” said CREA chief economist Gregory Klump.
© The Vancouver Sun 2008
