The report analyzes the B.C. economy and housing markets including detailed forecasts by home type of the province’s 12 real estate board areas.
“Some weakness on the export side of the economy and eroding affordability will have an impact on housing demand over the next two years,” said Cameron Muir, BCREA chief economist.
MLS sales are expected to decline nine per cent in 2008 and another two per cent in 2009. In the first quarter of 2008 home sales were down 14 per cent while active listings climbed 24 per cent. The housing markets are showing a balance between demand and supply which should relieve upward pressure on home prices, according to Muir.
Still the average MLS residential price is expected to increase nine per cent in 2008, followed by a more modest four per cent increase in 2009.
“Consumer spending, employment growth and net migration in the province are expected to remain robust and will continue to underpin housing demand through 2009,” said Muir.