CMHC Predicts Slowdown in P.G. Housing Market

Friday, February 20, 2009 03:52 AM

Prince George, B.C.- Canada Mortgage and Housing has released its forecast for housing in B.C. and the forecast is for reduced housing starts, lower prices and a higher vacancy rate for rentals.

For Prince George, the report predicts there will be a 25% drop in new construction starts this year, however, that will decrease to a 12% decline in 2010.

For re-sales, the forecast for Prince George shows a decline of 16.5% in sales this year, and a further 7.7% drop in 2010. Prince George is the only B.C. city surveyed that is expected to see a decline in sales in 2010. Kamloops, Nanaimo, Abbotsford, Kelowna, Vancouver and Victoria are all predicted as seeing increased sales next year, with Kelowna at the top of the chart with a 16% hike.

As for price, the average price of a re-sale in Prince George is predicted to slip to $227,000 this year (down 5.5%), and to dip another 2.2% in 2010 to $222,000 in 2010.

As for vacancy rates, CMHC predicts the vacancy rate in Prince George will grow from the 2008 rate of 3.9% to 4.9% and the average rent for a one bedroom unit will increase to $625 from the current $598.

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Posted on Friday, February 20, 2009 03:52 AM in News by 250 News

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Comments

Posted by: tombstone81 on February 20 2009 8:59 AM

Amazing how these so-called "experts" are always late to the party. A year ago when it was starting to become painfully obvious to the Average Joe that a meltdown was coming...these sleazebag promoters were still encouraging people to buy with all kinds of false prophecy about the market. Now that the bottom has already fallen out, and prices/sales have been tumbling since early autumn...they want to make a "prediction" that the market will slow down!!

Utterly dumbfounding how assinine these government agencies are. Housing, employment, air quality...all of their "statistics" are complete BULLS**T!!

Posted by: polar7018 on February 20 2009 9:36 AM

tombstone,you've hit the nail right on the head.these experts that are so non productive are always a day late and a dollar short.

Posted by: lmorg on February 20 2009 2:13 PM

All they had to do is cut and paste the stats from 2000-2002 when the softwood lumber crisis was occurring.

Posted by: dirtcheap on February 20 2009 4:26 PM

CMHC...brilliant deduction Sherlock...rocket science this is not.

Posted by: Eagleone on February 21 2009 4:16 AM

These experts starve, and so do their families if they don't keep turn over happening. Its an industry. People need to realize that and take what they say with a grain of salt. They're trying to manage sentiment hoping for a herd mentality the smart ones can try and profit from.

The cost of transfer taxes, CMHC?, home inspections, lawyers ect it makes no sense to flip houses in a static market. Take the flip factor out is probably all they did and we likely have closer to a similar market as before.

IMO we are about to see inflation take off at hyper speed. I figure it will trigger and grow like wild fire out of control... and houses may stay down for a while, but with hyper-inflation from stimulus debt spending to bail out the bankster it won't be long until house prices are reflected in this and all is well again for the home owner other than supper massive debts the government will then tax us to pay.

Huge profits will be made in the process of transition through inflation inevitably, but I just can't tell you yet how that will happen? Owning a home though is a good bet I think if your interest rates are locked in.