According to BCREA's fall Housing Forecast, BC MLS residential sales are forecast to decline 28% from 102,805 units in 2007 to 73,700 units this year. A modest 4% increase to 76,500 units is forecast for 2009.
A weaker provincial economy is expected to increase the jobless rate from 4.4% this year to 4.9% in 2009. "While some jobs losses will occur next year, BC households will remain on a relatively solid financial footing," said Cameron Muir, Chief Economist.
The average MLS residential price is forecast to increase 3% to $435,000 this year. However, home prices peaked in the first quarter and have been edging lower for several months. For 2009, the average price is forecast to decline 9% to $413,000, with most of the decrease having already occurred by the end of this year.
Downward pressure on home prices is expected to ease by the second quarter of 2009, as an increase in affordability and consumer confidence induces a modest growth in sales.The inventory in homes for sale is also expected to decline in the coming months as potential home sellers delay putting their homes on the market until conditions improve.
Issued twice per year, the Housing Forecast analyzes the BC economy and housing markets, including detailed forecasts by home type of the province's 12 real estate board areas.
Read the news release: www.bcrea.bc.ca/news_room/2008-10-29Forecast.pdf