BC Real Estate Association fall forecast: Home prices dropping, sales numbers slowing down

VANCOUVER (NEWS1130) - Home prices are dropping, and sales numbers are slowing down, according to the fall forecast from the BC Real Estate Association.

Record high prices were expected to slow demand. But add to that shaky consumer confidence because of record high oil prices earlier in the year, and the bears roaming the stock market in recent weeks.

However, Cameron Muir with the BC Real Estate Association says prices in Vancouver, and the Fraser Valley will actually finish the year up, at about 3% over 2007.

Rollickin' real estate could mean a good ride for buyers

According to Somerville, Vancouver’s housing market will only stabilize if there is stability in global credit markets. One big risk, he said, is if banks stop lending money to one another, which could prevent business borrowers from making unsecured loans to meet company payrolls. However, the record recovery on Wall Street on Thanksgiving Day—when the Dow Jones Industrial Average rose by 936 points—left some observers thinking the worst of the credit crisis could be over. That was followed by a record 890-point gain in the Toronto Stock Exchange index on October 14, giving comfort to Canadian investors.

Pastrick said that he expects fewer housing starts in B.C. next year, which could address the imbalance between demand and supply. But this might take a few months to work its way through the system.

In the meantime, the region’s roller-coaster real-estate ride may continue. What that means for prices is anyone’s guess.