The British Columbia Real Estate Association (BCREA) released its 2012 Fourth Quarter Housing Forecast today.
Multiple Listing Service® (MLS®) residential sales in British Columbia are forecast to decline nearly 10 per cent to 69,200 units this year.
Recent tightening of mortgage credit regulations has squeezed some potential buyers out of the market. Reducing the maximum amortization for high-ratio mortgages from 30 to 25 years was equivalent to a 100 basis point increase in the mortgage rate for first-time and early move-up home buyers.
However, strong full-time job growth, persistently low mortgage interest rates and an expanding population base point to more robust consumer demand in 2013." Most regional markets remain tilted in favour of home buyers, meaning there is ample supply for house hunters. Against this backdrop, home prices are expected to remain relatively stable for the balance of this year and through 2013.