The average residential home is expected to decline 13% to $396,600 in the province of British Columbia. 

Residential sales are also being fore-casted to decrease by 9% from 68,923 unit sales in 2008 to 62,650 unit sales.

Cameron Muir, Chief Economist for BCREA says "Downward pressure on mortgage rates and lower home prices are providing much needed improvement in home affordability.  Increasing affordability and significantly lower housing starts are setting the stage for a healthier market in the years to come."

I agree with Cameron Muir's assessment of the current real estate market in British Columbia.  With average home values adjusting and consistent low interest rates, now is a terrific time to consider buying a home.  The affordability of homes will benefit the first time home buyer or the move up buyer looking to upgrade from a condo or townhome into a house.  Personally, I am finding buyers are starting to come out of the woods and write offers, some get accepted while others are just too low for the current market.  Conversely, I am finding sellers are acknowledging that the real estate market favours buyers and are starting to price their homes accordingly!

Please note that it is very important to remember that forecasts are nothing more than a prediction and/or best guess and should not be taken as factual as even economists have been known to be wrong from time to time!

Full BREA article

Sincerely,

Jason Neumann