Vancouver home sales still expected to increase
According to the British Columbia Real Estate Associations forecast, residential sales are expected to increase six per cent from 85,028 units in 2009 to 90,100 units in 2010 before retreating three per cent in 2011. Higher home prices and rising mortgage interest rates will provide a constraint on home sales next year.
Relatively slow economic growth, reduced pent-up demand and rising carrying costs are expected to keep home sales from continuing at their frenetic pace.
Although the average home price is expected to increase five per cent in 2010, they are only expected to increase by one per cent in 2011.
Interest rates are expected to increase in the third quarter of this year with will limit price appreciation next year.
Across the nation, Canada's residential real estate market is forecast to remain unusually strong through the first half of 2010 as economic conditions across the country improve and the stimulus impact of low interest rates continues to stoke the demand.
As the confidence in the economic recovery builds in early 2010, increases in real estate levels and over all market activity are expected to continue. However the erosion of affordability driven by these higher house prices and the expected late year upward movement of interest rates are expected to bring the market back into balance in the second half of the year, when Vancouver real estate prices are expected to moderate.
Improving supply as teh year unfolds and easing demand as the cost of home ownership in the Vancouver Real Estate market rises should moderate home price increases in the second half of 2010.
For more information on the Vancouver Real Estate market please contact:
Peter Raab
Vancouver Real Estate Expert
Labels: Vancouver Real Estate, Vancouver Real Estate market forecast, Vancouver Real estate market update
