Home sales loose some sizzle

For six years B.C.'s residential real-estate market has been sizzling hot for sellers, but a dip in demand has created balance between supply and demand and buyers and sellers.

Moderation, balance, less frenetic and equilibrium are words used by Cameron Muir, chief economist for the B.C. Real Estate Association to describe current market conditions.

Their 18-page spring housing forecast released yesterday predicts a nine-per-cent decline in the number of housing units sold this year and a further two per cent decline next year.

Muir expects 93,800 units to sell in B.C. this year and 92,000 to sell next year.

Home sales in B.C. were down 14 per cent in the first quarter of this year while listings were up 24 per cent.

Muir said the edging down in sales and an increase in the number of homes on the market "means less upward pressure" on prices but prices will still rise, he said.

Homes (detached, attached and apartments) are expected to rise in price by nine per cent this year and four per cent in 2009. In 2007 the average B.C. price rose12 per cent to $438,975.

In Greater Vancouver, last year's Multiple Listing Service average price was $570,795 and by 2009, said Muir, it's forecasted to increase to $651,000.

"Prices are still climbing . . . but not in the 15- to 20-per-cent range we've seen in previous years," Muir said.

The balanced conditions are a relief for home buyers, he said, but sellers will need to be patient.

"No longer are many home sellers immediately realizing their asking price upon putting their home up for sale," Muir said.

Muir attributed the decline in housing demand to weakness on the provincial economy's export side due to a high Canadian dollar and a weak U.S. economy,

But B.C.'s economy is forecast to grow 2.5-per-cent this year and 2.7 per-cent in 2009, he said.

(prepared by Lora Grindlay/Province)