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Wednesday, February 17, 2010

Canadian Mortgage Broker News - Residential sales in B.C. to slow in 2011

Canadian Mortgage Broker News - Residential sales in B.C. to slow in 2011

Residential sales in B.C. to slow in 2011


Residential sales growth will remain positive in the next two years, but won't be able to replicate the past year's growth, says the British Columbia Real Estate Association (BRCEA).

In its Housing Forecast Update for the first quarter of 2010, the association says B.C. Multiple Listing Service (MLS) residential sales are forecast to increase six per cent from 85,028 units in 2009 to 90,100 units this year, before falling to three per cent to 87,500 units in 2011.

B.C. residential sales went from about 50,000 units in the first quarter last year to 112,000 by the fourth quarter 2009, a 124 per cent increase.

"That gold medal finish will give way to a silver medal performance in 2010," says Cameron Muir, BCREA Chief Economist.

Meanwhile, prices are forecast to increase five per cent to $490,900 this year, then another one per cent to $494,800 in 2011.

"Higher mortgage interest rates will limit price appreciation next year," says Muir.