Metro Vancouver to Fuel Growth In B.C.
According to a new three-year forecast released by Central 1 Credit Union, things are on their way up in B.C- led primarily by an upstart of activity and higher prices in Metro Vancouver.
Additionally, they predict that the median price in B.C. is set to break a new record this year- $ 402,000.
The forecast states that total home sales will increase to 95,500 units- coming back from a from a 10.5 % decline from 2010.
There will be more growth in coming as well; they forecast an additional 2% in 2012, and a surge of 15% the following year.
Despite all of these promises of upward momentum, there is expectation that the highs seen in the last decade are not likely on the horizon.
“Even after those gains, sales will be below the levels we saw from 2002 to 2007,” said Central 1 economist Bryan Yu. “Low, but rising, interest rates and tighter mortgage insurance rules will restrict sales for the next few years.”
They expect that there will be a rush to market early this year, in advance of the introduction of Jim Flaherty’s mortgage restrictions, which will take effect later this month.
“Metro Vancouver will observe the strongest uptick in early-year activity, given the higher proportion of local buyers and higher prices in those areas,” added Yu.
This is emphasised with the high-end investors who will be purchasing high end condominiums throughout specific neighbourhoods of Downtown Vancouver -and also with the high-end investors looking at detached homes, going to the Vancouver West side neighbourhoods looking for the prestige and the top of the line public & private school systems.
Central 1 expects that there will be continued weakness in Okanagan, the Kootenays and parts of Vancouver Island , due to “weaker demand conditions in 2011 as mortgage rates rise and buyers remain hesitant to make discretionary and luxury purchases.”