BCREA Fall Housing Forecast
October 29, 2008
BCREA Fall Housing Forecast: Consumer Confidence Key to Housing Market Conditions
Vancouver, BC -The British Columbia Real Estate Association (BCREA) released its fall 2008 Housing Forecast today.
"BC Multiple Listing Service® (MLS®) residential sales are forecast to decline 28 per cent from 102,805 units in 2007 to 73,700 units this year. A modest 4 per cent increase to 76,500 units is forecast for 2009. "The erosion of consumer confidence that began with rising fuel prices earlier in the year is continuing, as the global financial crisis and volatile equity markets have BC households concerned about their own finances," said Cameron Muir, Chief Economist. A weaker provincial economy is expected to increase the jobless rate from 4.4 per cent this year to 4.9 per cent in 2009. "While some job losses will occur next year, BC households will remain on a relatively solid financial footing," added Muir."
Full Story OMREB
Full BCREA Housing Forecast
It is not all doom and gloom based on this article's tone. The media I feel has freaked or at least shook people up with its talk of major downward pressure on home values. The reality is if Canada mirrors the US economy so closely then why haven't house priced spiralled downward radically. I think that the values in Kelowna for instance are back to more of a balanced market and nothing more than that. Canadians in general play it safer with their investments and treat their equity in a home like gold. The next few months will be very interesting indeed.
Sincerely,
Jason Neumann
Kelowna Real Estate Blog
Posted by Jason Neumann
on November 2, 2008