This issue of Realtors insight is from a document I have read and thought my readers may be interested in, regarding ?HOUSING FORECAST?. This is a rather interesting article as we have and are very much experiencing it right here in Tumbler Ridge.
BALANCED MARKET EMERGING:
Multiple Listing Services residential sales volume in the province of BC reached a record $37.8 billion last year. However, the increase in sales volume belied the fact that unit sales dipped 9%. The increase in sales volume was the result of average home prices rising 18% and not because of an elevated number of transactions.
Market forces began to realign during the summer of 2006. Unit sales no longer posted record number, and home listings started to edge up. As a result, the ratio of sales to listings (a measure of demand and supply conditions) trended down. This meant a relaxation of upward pressure on home prices.
The average home price in BC climbed 75% to $391,000 over the last five years. While a windfall for most homeowners, high home prices are beginning to be a serious impediment to may low equity homebuyers. Some potential homebuyers are now finding themselves at the wrong end of an affordability squeeze.
The shift in the housing market conditions is not a signal of an impending collapse. Rather, it is a gradual return to a balanced market. Demand is forecast to remain above the long term average.
Housing market fundamentals continue to be strong, underpinning both sales activity and home prices. High demand for labour throughout the province translates into robust employment growth, and a persistently low unemployment rate. Wages and salaries, and personal disposable income are forecast to grow at more than twice the rate of inflation. Population growth, led by increasing net migration, is contributing to strong household growth expectations.
MLS residential sales are forecast to dip a further 3% in 2007 and 4% in 2008. Housing affordability will remain the moderating factor in the BC housing market. As a result, the average MLS home price is forecast to climb a more modest 8% to $422,000 this year and 7% to 450,000 in 2008.
There you have it an economical forecast. Do you have a question? Feel free to ask, submit questions to B.C. Force Connecting Buyers and Sellers in writing to Brenda Banham RE/MAX Dawson Creek Realty:
e-mail email@example.com fax: 250-242-3256 or mail Box 1769 Tumbler Ridge, BC V0C 2W0 OR Claudette M.M. Huber RE/MAX Dawson Creek Realty: e-mail firstname.lastname@example.org fax: 250-242-4410 or mail Box 2106 Tumbler Ridge, BC V0C 2W0