At the Housing Outlook 2012 conference in Vancouver, analysts from Canada Mortgage and Housing Corp. (CMHC) sketched a scenario of surprising stability in the Vancouver and BC market for next year. For all of BC, housing sales are forecast to increase 7.4 per cent, according to CMHC.
Average Performance for Housing Market in 2012
"Modest economic growth at home and abroad is expected to limit growth in consumer demand both this year and in 2013," said Cameron Muir, BCREA Chief Economist.
"While European sovereign debt concerns and a sluggish US economy will continue to impact consumer confidence, strong demand in the bond market is expected to keep mortgage interest rates at or near record lows for most of 2012," added Muir. Home prices in most BC markets are forecast to experience little change over the next 24 months as the supply of homes for sale more closely matches consumer demand.
BC Returns to the PST on April 1, 2013
The BC Provincial Government released a timetable for the elimination of the Harmonized Sales Tax (HST) in an announcement from
BC new housing rebate threshold will be increased to $850,000 for a provincial HST rebate of up to $42,500. It is important to note that the HST does not apply to resale housing. BC's portion of the HST will continue to apply before April 1, 2013. Purchasers will be eligible for up to $42,500 and builders will continue to claim input tax credits. BC's portion of the HST will no longer apply to newly built homes where construction begins on or after April 1, 2013. Builders will once again pay seven per cent PST on their building materials.
There seems to be flickering, rays of dawn: the dawn of recovery. There is now better news emerging from south of the border. For instance, a much higher number of new jobs than anticipated, with the unemployment rate the lowest in three years at 8.5 per cent (7.5 per cent nationally in
We will likely see more of the same in terms of the pace of the market in the next year or two, but a slight to modest rise in sale prices and volume. I believe that we may look back at the years of 2011/2012 as the "bottom of the market."
Let's not forget that the peak of the real estate prices was seen around 2008 - almost four years ago. Indications are that a change, slow but positive, is on the way.
For those who are still thinking about buying a property, do not stay on the sidelines too long - the tide of good buys seems about to change!
Market Trends Reports. See the reports on this website under the Market Statistics tab for January 2012.
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