Morgan: Upbeat 2013 forecast from CMHC

The increase in employment growth in the area will continue to support the supply and demand of the housing market, according to the CMHC.

In September, only a mere 116 single-family homes were sold in the Central Okanagan, a surprisingly low monthly number but comparable to September 2007 when Canada’s red-hot real estate market came to a halt with just 117 single family homes reported sold.

According to the Canadian Real Estate Association, September home sales fell across Canada by 15.1 per cent from a year ago, however, this is not region specific information.

In October, 123 single family homes sold, slightly up from the previous month. Last year, that figure was 132 dwellings sold, a decrease from 2012 to 2011.

As Canada’s housing market cools down in the third and fourth quarters, whispers are being heard of another recession.

However, Canada Mortgage and Housing Corporation is claiming a different forecast. In CMHC’s recent  Housing Market Outlook, the housing sales forecast for 2013 shows an increase of eight per cent in sales over 2012. Inventory is expected to remain on the high side, offering competitive sale prices and extending the buyer’s market sales conditions before leveling out by mid-year.  And mortgages rates are predicted to rise only slightly in 2013.

The increase in employment growth in the Kelowna and surrounding areas will continue to support the supply and demand of the housing market, according to the CMHC forecast.

“We see a pick up in growth in both employment and the economy next year, and that’s what leads to a slightly stronger outlook for housing,” said Carol Frketich, CMHC’s B.C. regional economist.

Among all these promising predictions, CMHC says  Canada has been feeling a recent staleness in the market due both to the usual seasonal slowdown and that extreme adjustments were made to the mortgage rules last July, forcing Canadian buyers to tighten up on their spending.

The likelihood of seeing 2006 sale prices in the near future is doubtful as buyers are waiting for the bottom to hit in our real estate slump, but we may not be waiting too much longer if CMHC is on target with its housing sales forecast for 2013.

Ceinwen Morgan has worked in the Kelowna real estate industry for the past five years.

Just Posted

Expert to speak on extinction of species and humanity’s peril in Kelowna

UBCO will host Conservation ecologist Corey Bradshaw Nov. 20

Men caught on video stealing bait car in Kelowna

Two men stole a bait car in Kelowna

More affordable housing for seniors opens in Kelowna

Third and final building at the Apple Valley complex on Benvoulin Road opens

Truck smashes into multiple parked vehicles in Kelowna

The driver of a truck was taken to hospital with undetermined injuries

Kelowna’s definitive Christmas market list

We’ve prepared a list of every market in the Central Okanagan

Fashion Fridays: 5 coats you need this winter!

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

B.C. to fund gender-affirming surgeries for transgender people

Roughly 100 people in B.C. travel each year out of province for lower surgeries

U.S. mayor and dying dog’s roadtrip to B.C. goes viral

First vacation in three years came a month after blood cancer diagnosis

Federal fall update expected to offer more support for struggling news industry

Ottawa committed $50 million over five years for local journalism in ‘underserved communities’ last budget

UK’s May appeals to public on Brexit, braces for more blows

British Prime Minister Theresa May answered questions from callers on a radio phone-in, the day after she vowed to stay in office

VIDEO: Stan Lee leaves posthumous message for his fans

Marvel Comics’ co-creator died on Monday at the age of 95

$136M in transit funding coming to B.C.

The announcement was made at the BC Transit yard in Langford on Friday morning

Ottawa apologizes to Japanese family in B.C. after chopping historic cherry trees

Plaque installed in Prince Rupert to honour the memory of Shotaro Shimizu

Two B.C. police officers, held in Cuba for months, cleared of sex assault allegations

Port Moody Const. Jordan Long and Vancouver Const. Mark Simms have been in Cuba since March

Most Read