According to a report released by Central 1 Credit Union, the fate of Vancouver housing prices may not be as gloomy as some organizations are predicting. In the report, Central 1 economist Bryan Yu says he expects Canadian housing prices will slip, but not plunge.
According to an article in The Vancouver Sun, he notes that “right now, we’re undeniably in a sales slowdown with substantial declines in sales over the past several months. But we’ve also seen positive employment growth and continuing very low interest rates.”
He went on to say that, “we believe the supply side will adjust substantially. When prospective sellers see weak sales and pricing, they pull their listings. [Most] don’t have to sell. This balances out the supply side environment.”
Yu’s report argues that home prices in Vancouver may drop five per cent this year, but Yu expects housing prices will rise 2.9 per cent in 2013 and 2.0 per cent in 2014.