The B.C. Real Estate Association believes it will remain a seller's market for the foreseeable future in British Columbia.
Housing prices are expected to rise in our Board area, but remain in the single digits instead of the double digits we've seen in recent years.
Among housing analysts, the consensus appears to be for a seven to eight per cent increase in housing prices. Sales are also expected to slow a bit from the near record-breaking pace of 2007, but it's still expected that sales will be above the previous ten-year average.
Economists anticipate a five to seven per cent decline in the number of sales, below 2007 numbers. The anticipated decline, coupled with forecasts of a moderate increase in listings, should result in more time in 2008 for clients to undertake due diligence before making an offer.
Our data generally complements these assertions, as we believe 2008 should see a slight shift in the market toward buyers. But on the whole we believe it will remain a seller's market for the foreseeable future.
In terms of overall economic fundamentals, real wages have increased, unemployment remains low and interprovincial migration to B.C. is expected to occur at a strong rate for the fifth straight year, a welcome fact considering the province registered net losses in interprovincial migration for five consecutive years between 1998 and 2002.
Overall, the economic climate in the province appears relatively strong. Most analysts predict the B.C. economy will grow at a rate of about 2.9 per cent, slightly outpacing the projected growth rate nationally.
Everyone is talking about the U.S. sub-prime market and the effect it's having on economies around the world. Canada has a stricter regime for lending, so we have not experienced the same problems. However, the Canadian and U.S. economies are closely tied. So we can't avoid all the ripple effects.
What does all this mean to us? Economists predicted a slowdown in the housing market for the past two years in a row, and that didn't happen. We won't really get a handle on 2008 until we're into the second quarter.
For more information on real estate, statistics, and buying or selling a home, visit www.realtylink.org.