B.C. Real Estate Association’s Housing Forecast for 2009 to 2010

June 9, 2009 in B.C. Real Estate News, Kamloops Real Estate Info by Kirsten Mason | 2 comments

The B.C. Real Estate Association released their Spring 2009 housing report recently. I have included the Kamloops specific information below from this report. Click here for the full report from BCREA.

Homes sales in Kamloops are beginning to rebound from the lows experience during the fall and winter months. While the weaker provincial economy will continue to impact housing demand, sales activity is expected to improve through the balance of the year. A sizable increase in affordability is beginning to increase first-time buyer activity in the marketplace. The combination of lower home prices and historically low mortgage interest rates has made homes more affordable than at any time in the last two years. At the beginning of April, the carrying cost on the average priced home was 24 per cent less than a year ago. An increase in first-time buyers lubricates the chain of ownership by allowing move-up buyers to more easily sell their current homes and complete their new purchase.

While home sales are expected to improve in the coming months, low sales levels in the first quarter will pull down the annual total. MLS® residential sales in Kamloops are forecast to decline a further 17 per cent to 1,860 units this year. A moderate improvement is expected in 2010, with MLS® residential sales expected to climb 8 per cent to 2,000 units.

Recent data suggests market conditions in Kamloops are improving. Active listings are trending lower with home sales edging higher. The large imbalance between supply and demand that was evident early in the year is beginning to wane. A continuation of this trend will likely cause home prices to stabilize in the next quarter. The average annual MLS® residential price is forecast to be 9 per cent lower this year. However, most of this decline has already occurred and more price stability is expected for the balance of the year.

Housing starts in the Kamloops CA will follow the provincewide pull-back this year. Housing starts are forecast to decline 45 per cent to 320 units in 2009 and then increase 14 per cent to 365 in 2010. Slowing growth in the housing stock will help stabilize home prices by reducing the total number of homes available for purchase in Kamloops.

BCREA website.

  1. Vancouver Agent on July 14, 2009 at 12:27 pm

    It is a good market to be purchasing your first home, buy now before the prices go back up! Be quick people, we have already hit bottom and these prices won’t last long.

    Only problem is those bidding wars, that’s a real pain at the moment!

    Some homes are priced to sell are they? No, not really, “they are priced to get lots of attention”, and that they do!

    Be smart if you are a first time home buyer and don’t be forced into spending too much, bargains can be had still.

  2. Art on September 13, 2009 at 8:33 am

    MY VIEW AND OPINION ON THE CURRENT MARKET
    ————————————————————–
    It would take a rocket scientist to learn how and in what direction the real BC housing price is moving. Yes, the facts and data might show some positive signs today, and yet we aren’t so sure if this trend will continue over the next few years. I went back on the PLUNGE-O-METER website which Smart home buyers consider a reliable source of information in terms of understanding the housing market situation. Accordingly, the price of a Detach house in BC will be revisited based on the 2005 market value, a very strong indication that the 2009 current home value is just making another headway for a big bang when it reached the resistance level after it reverses the 1st quarter of the year. In other words, the price will make another double dip once it satisfy the correction level (eg. approx. 40-50%). By the way I am a former chart analyst and a market trader. If you have not made any decision yet, I would suggest you visit the PLUNGE-O-METER website for your information. Goodluck.