British Columbia’s unprecedented housing market expansion will continue into 2009, as economic fundamentals and market conditions remain conducive to high sales volumes and rising prices, according to Credit Union Central of British Columbia’s latest forecast. “Lower mortgage rates, high income growth and rising in-migration through to 2009 are favourable trends supporting sales demand,” said Central’s Chief Economist, Helmut Pastrick. “Poor affordability for low-equity buyers due to high housing prices is the main restraint to even higher sales levels.” Housing prices will reach new highs this year and next, but with a slowing in the rate of increase as market conditions ease. Prices will typically increase by 10 to 12 per cent this year and five to six per cent during 2009, after rising 12 to 14 per cent last year.

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