There will be fewer sold signs on real estate than previously anticipated in Metro Vancouver and across B.C., according to a new forecast. (CBC)
New figures show the real estate market is cooling off across Canada, including the previously hot markets in B.C. and Metro Vancouver.
A Canadian Real Estate Association survey released Wednesday says sales are lower than expected, and predicts prices will remain flat for the rest of 2010.
"Today, home sales are down more than 30 per cent from that very high [winter] level," said Cameron Muir, an economist with the B.C. Real Estate Association.
'Prices have basically levelled at this point'—Real estate executive Jake MoldowanDisincentives to buyers include higher interest rates, tighter credit and high housing prices, the association said in a release.
"Buyers are cautious," said real estate agent Larry Yatkowsky. "They're looking at all the houses, but they're not prepared to pay the price that they're asking."
Forecasts revised
The survey results have prompted the Canadian Real Estate Association to revise its housing market predictions. The national forecast of just over 527,300 sales for 2010 has been reduced by 40,000.
The predicted number of sales in B.C. will drop by about 22,000 to about 80,000, the association said.
The record high B.C. home prices reached earlier this year also are forecast to ease off in 2011, dropping about 3.5 per cent.
"Our numbers tell us very clearly right now that prices have basically levelled at this point," said Jake Moldowan, President of the Real Estate Board of Greater Vancouver.
The province — and Metro Vancouver in particular — are heading toward a buyers' market, said Moldowan.
"We do know that our inventory levels are rising, which is going to create more choice for buyers and it'll give buyers more time to find a home," he said.
With files from the CBC's Belle Puri
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