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