CMHC Predicts Slowdown in P.G. Housing Market
By 250 NewsFriday, 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.
posted by Colin @ 9:27 AM
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