Prices Predicted to Fall

The Central 1 Credit Union has joined in the chorus of predictions for declines in prices for BC housing.

http://ca.news.yahoo.com/s/cbc/081023/canada/vancouver_bc_housing_recession_3

The Credit Union reported, "Since a high in March 2008, B.C.'s residential house prices have fallen 12 per cent, and will fall another 13 per cent in 2009, bringing the provincial median to $310,000."

Our pricing models are near dead-on with the Credit Union. We have been predicting the 25% price drop since May and we believe that prices will bottom out somewhat around a 30% drop from the peak.

We, like the Credit Union, also project a possible deeper drop in prices in 2009 in the event that the economic conditions deteriorate more than expected. The Credit Union suggests that 2009 might well see a 25% decline in price. We agree that type of decline is possible, although a worst case scenario.