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BC real estate sales decline This Year but expected to Rise in 2009

Posted On: 2008-11-17

November 11, 2008: The fall 2008 housing forecast from the British Columbia Real Estate Association (BCREA) reports that BC Multiple Listing Service (MLS) residential sales are expected to drop 28% to 73,700 units this year from 102,805 units in 2007, before rising 4% to 76,500 units in 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,” says chief economist, Cameron Muir.

The BC unemployment rate is predicted to rise from 4.4% this year to 4.9% in 2009 due to a weaker provincial economy. Despite the job losses, Muir believes that BC households will remain financially sound.

BCREA also expects that the average MLS residential price will increase 3% to $453,000 this year. For 2009, the average price is forecast to decline 9% to $413,000, though most of the decrease will have occurred by the end of 2008.

The downward trend in home prices is believed to stabilize by the second quarter of 2009, as an upswing in affordability and consumer confidence creates sales growth. The number of listings of homes for sale should also fall over the next six months or so, as home sellers wait for conditions to improve before participating in the market.

Taken from Canadian Real Estate Magazine  Copyright ©2008 Key Media Pty Ltd

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