BC Housing Market in recession

Central 1 Credit Union is forecasting more drops for BC's housing market. It says that the provincial median sales price will drop 13 per cent to $310,000 in 2009 and by a further five per cent in 2010 when it expect prices to turn.

“A poor economic outlook for 2009 and tight credit conditions extending into next year will keep housing sales on a downward trajectory for several more months,” Central’s Chief Economist, Helmut Pastrick. "Housing sales will decline by a further 17 per cent in 2009, following a projected 30 per cent fall this year. An easing in the credit crisis, lower mortgage rates, and an improved economy will see housing sales turning upward in 2010.”

Central adds that it expects new construction to fall 37 per cent in 2009 in a poor sales climate and tight credit environment. It expects housing starts to make a modest recovery in 2010, as sales (currently at multi-year lows) strengthen and credit conditions relax.