According to a report released by Central 1 Credit Union, home sales in British Columbia are expected to slow during the remainder of the year and fall short of the previous year's volume. However, prices are anticipated to rise to a new record high.
The report forecasts that 88,200 units will be sold before the end of 2011, which would be close to a 1 percent decline from 2010. In addition, the number of resale home transactions is expected to jump 4.7 percent from the previous year's total. However, new home transactions are anticipated to decrease by 26 percent.
Despite the anticipated declines, the company expects the median price of homes for sale to rise 6.8 percent to $417,00.
"The real estate market will remain stable for the next couple years, weighed down by global economic issues, moderate employment and population growth, and changes to mortgage insurance rules," said economist Brian Yu.
Experts do not expect home sale totals to drop too drastically, however, as interest rates for home loans continue to remain low. As a result, more mortgage calculators are showing affordability for potential homeowners, prompting them to enter the market.