Morgan Rice

Home sales in Vancouver are expected to rebound this year

after declining 14 per cent to 31,144 units in 2010. Relatively

strong immigration continues to bolster the Vancouver housing

market while the overall economy and related job growth faces

headwinds from an anemic US economy. However, mortgage

interest rates are expected to remain low through 2012 keeping

affordability and purchasing power on an even keel. Nevertheless,

consumer demand is expected to remain near the ten-year

average of 35,000 units both this year and next. MLS® residential

sales in Vancouver are estimated to increase 7 per cent to 33,400

units this year and forecast to rise a further 3 per cent to 34,300

units in 2012.

As reported in the spring Housing Forecast, the average MLS®

residential sales price in Greater Vancouver was being skewed

well above what market conditions suggest. A greater proportion

of detached home sales in the region’s priciest markets

catapulted the average price into the stratosphere. Since the

second quarter, regional demand has trended toward more typical

patterns, with average prices more representative of market

conditions. While the average home prices are forecast to oscillate

between a 16 per cent increase this year and a 3.5 per cent decline

in 2012, the typical home price in Vancouver is expected to remain

relatively unchanged through next year.

reprinted with permission BCREA