BC Home Sales Sheltered From US Market Woes
Hello fellow professionals. More evidence today from the BC Real Estate Association that our market in British Columbia is continuing to thrive despite the implosion in the United States brought on by the sub-prime mortgage issues and economic difficulties. Below is the release. Those of you with blogs or e-mail newsletters, you need to get this information out there. Post it, e-mail it. Don’t assume they’ll hear about it on the news or in the paper. Every day we’re asked questions from people who are nervous about buying or selling, because they assume that what is happening in the US is also affecting us. Spread the good word!
BC Home Sales to Surpass 100,000
BCREA Fall Housing Forecast
Vancouver, BC – September 27, 2007. The British Columbia Real Estate Association (BCREA) released its fall 2007 Housing Forecast today.
BC Multiple Listing Service® (MLS®) home sales are forecast to break the 100,000 unit mark for only the second time in history. BCREA forecasts that BC MLS® residential sales will hit 101,000 units this year, up 4 per cent from 2006. The highest number of MLS® sales in the province was recorded in 2005, when a total of 106,310 homes were sold. The ten-year average is just under 78,000 units.
“Exceptionally strong consumer demand over the summer months has changed the outlook for this year from declining home sales to the second highest on record,” said Cameron Muir, Chief Economist. “While eroding affordability is squeezing some potential buyers out of the market, the housing stock is increasingly diverse, providing a mix of home types that appeal to a wide consumer market.”
BC home prices are also on the rise. The average MLS® residential price is forecast to climb 12 per cent to $437,000 this year. “While home prices continue to face upward pressure, the rate of growth is expected to moderate,” added Muir. The BC average MLS® price increased 18 per cent last year, and is forecast to rise at a more modest 8 per cent in 2008.
BC housing starts are forecast to decline 7 per cent to 33,900 units in this year and a further 4 per cent to 33,000 units in 2008. While single detached housing starts are trending down, multiple housing starts are holding firm at 21,000 units this year. Multiple housing starts now comprise 62 per cent of all new residential construction activity in the province.
The BCREA Housing Forecast is a semi-annual publication produced in the spring and fall of each year. The report contains forecasts and analysis of the BC economy and housing markets, including detailed forecasts by home type of the province’s 12 real estate board areas.
A complete copy of BCREA’s Housing Forecast is available here: www.bcrea.bc.ca/economics/forecasts/2007-09Forecast.pdf.