B.C. housing market stabilizes
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Updated: July 06, 2009 7:31 AM
A year-long buyers’ market in B.C. real estate came to an end in May, according to Central 1 Credit Union’s analysis of the lastest market activity.
Tumbling prices have kept many sellers off the market, and new listings are now at their lowest level in six years, but sales have now climbed for five consecutive months. For the first time in more than a year there is now one sale for each two new listings, an indicator of a market where neither buyers nor sellers have a distinct advantage.
“Record low mortgage rates together with last year’s price declines have driven up affordability and demand, while supply has come down from the highs of 2008,” Central 1 says in its weekly economic briefing.
But credit union economists say the stronger MLS housing market is likely to cool off again by this fall, before the B.C. economy is expected to begin growing again by early 2010.
“Pent-up demand left over from last year’s slowdown will ease, likely within a few months. Two- to five-year fixed mortgage rates are forecast to rise 30 to 40 basis points by year-end, disqualifying some low-equity buyers.”
Commercial real estate has had a harder time in the recession, with slumping values and sales volumes as vacancy rates have risen.
“The outlook is for commercial real estate markets to recover within one or two years, although previous highs are unlikely to be reached over the next five years,” said credit union economist David Hobden.
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