Bullish Forecast for Vancouver Real Estate Market in 2010
October 22nd, 2009 Categories: Real Estate News, Vancouver Real Estate
Central Credit Union, Chief Economist , Helmut Pastrick, projects a 30% increase in sales for BC real estate in 2010, setting new records for both sales and prices, and then falling back slightly in 2011.
“The annual medium sales price will climb to $391,000 next year and $415,000 in 2011. Pastrick also sees housing starts rebounding almost 50% in 2010. The sales upturn will be stronger in Metropolitian areas, with a 45% increase in Vancouver. The record housing sales will be due to “favourable mortgage rates, a growing economy and easier credit for builders and developers.”
Pastrick also sees mortgage rates starting to turn up in 2010 and “with conviction” in 2011, with the 5 year term breaking through 7% (posted rate, not discount rate). See the graphs and read the report here.
He predicts that the implementation of the HST on July 1, 2010 will effect new construction and alter its production schedule. Home renovation spending is up this year but will also be effected by the HST next year and the end of the Home Renovation Tax Credit.
The rental vacancy rate will rise to 2.1% next year, from 1.6% this year and drop back to l.7% in 2011.
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It’s good news the market has picked up but the soaring rates need to be controlled. Granite CounterTops
Comment by Kitchen Countertop — October 27, 2009 #
who knows
Comment by v — January 22, 2010 #