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Local housing resales, prices will keep falling: prediction

VANCOUVER (NEWS1130) – A local economist predicts Greater Vancouver’s “listless housing market performance will persist through 2013.”

Central 1 Credit Union‘s outlook for the BC housing market says sales last year hit a 12-year low. Economist Bryan Yu says the factors that contributed to the sales plunge and lower prices “are still in play.”

He expects resales will fall another four per cent this year to 31,500 while the median price, the midpoint between highest and lowest, will slide six per cent to $474,000.

Yu says “subdued immigration, stagnant employment growth and the most recent round of mortgage insurance rule tightening will weigh on purchasing… biting particularly hard in high-priced Greater Vancouver.”

Looking at the province overall, Central 1 says “home sales will gather a bit of strength this fall and hold steady for the rest of the year, but the recovery will be weak and slow.”