The report from Genworth Canada shows prices here will go down by two per cent to an average of just over $348,000.
Economist Robin Wiebe says the drop-off is thanks to fewer off-shore buyers. But he thinks prices will eventually creep back up, which is good news if you already own a condo.
“I think that is going to be limited by the population growth and employment growth that we forecast for the Lower Mainland,” he explains.
This goes against recent warnings the real estate bubble could soon burst.
“The average condo price is about half of the overall resale price. People who want to move to the Lower Mainland are expecting to live in a condominium, at least as a first time buyer,” Wiebe points out.
“For those seeking to own a home affordability in urban centres, condos remain a good option,” maintains Brian Hurley, chair and CEO of Genworth Canada.
The Federal Finance Minister has told Canadians to be careful when borrowing money for a home, saying household debt was our economy’s biggest enemy.
But it sounds like the market won’t be soft for long.
The BC Real Estate Association is out with its Third Quarter Housing Forecast today; it predicts home sales will edge down by four per cent in the fall, only to go right back up by 7.5 per cent in 2013.
Where will that increase come from? The association is banking on a growth in full-time employment and continued low interest rates.
Home sales are expected to hit nearly 79,000 units in 2013. The record was 106,000, seven years ago.
If you have any real estate questions or if you are thinking of buying or selling your home, please contact James Louie Chung, Greater Vancouver REALTOR® — Real Estate Agent at [email protected] or call / text ( 6 0 4 ) 7 1 9 — 6 3 2 8 today!
Source, Image: News 1130, Design.Shuffle