Newspapers of Canada

Vancouver Sun News Update

B.C. housing market defies odds, heats up

Strong sales numbers in recent months confound analysts' expectations

Anne Howland, with files from Derrick Penner, CanWest News Service; with files from Vancouver Sun

Published: Tuesday, August 21, 2007

"Canadian lenders have launched some alternative mortgage options in the past year, but they appear to be more conservative and are unlikely to overdo any subprime lending, which has been the problem affecting the U.S. housing and borrowing markets," she said.

According to CREA's most recent forecast, the national resale housing market will become more balanced next year, but will continue to favour the seller in most provinces.

Resale housing markets in the Western provinces will remain the tightest in the country and annual increases will be greatest in that region, CREA said.

RESIDENTIAL AVERAGE PRICE FORECAST

Annual percentage change: 2007(f)* 2008(f)

B.C. +9.9% +5.7%

Alberta +24.6% +6.6%

Sask. +17.4% +5.5%

Manitoba +11.2% +7.7%

Ontario +8.6% +4.8%

Quebec +6.7% +6.1%

Canada +10.4% +5.5%

RESIDENTIAL UNIT SALES FORECAST

Annual percentage change: 2007(f) 2008(f)

B.C. +4.6% -1.6%

Alberta +5.6% -4.5%

Sask. +33.7% -1.2%

Manitoba +6.5% -1.0%

Ontario +8.2% -1.5%

Quebec +11.3% -1.6%

Canada +8.1% -2.0%

* (f)=forecasts Source: CREA