Economic growth is set to moderate in the province, but will remain stronger than the national average. New home construction will decline over the forecast period. High
levels of existing homes listed for sale, as well as fewer overall home sales, has created buyers’ market conditions throughout the province.
Resales: A slowing economy and job market will contribute to lower the number of existing home sales through MLS® this year, after a significant decrease in 2008. Resales will increase in 2010 as a stronger economy and lower mortgage carrying costs, as a result of moderating house prices, eventually draw buyers back to the housing market.
Prices: Buyers’ market conditions will prevail throughout 2009 and result in lower home prices. The average MLS® price will decline ten per cent this year, to just under $408,000, and narrow the price gap with the rest of Canada. In 2010, the resale market will return to more balanced supply and demand conditions, and will result in an average existing home price stabilized at close to the 2009 level.
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SOURCE: CMHC Housing Market Outlook
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